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Tell me how they would value such things since due diligence has only been done on 4 of the 9 assets to date cjmarritt?. Who holds the assets, is it Eurasia the company which is to remain after an asset disposal or is it a subsidiary like the ones WK and MT are held in. It's an asset disposal, first mentioned in the bank rns of Oct 19, go and read it and see for yourself. They had the option to sell the whole company, it states that in the recent RNS, but they have still chose the asset disposal path as per the same RNS. The JV is with Eurasia, it's a JV which to date has no assets due to no earnout being done on any of them so far, once the earnout is done then you could effectively class them as some form of company JV asset. It never existed when the banks approached, never existed when the FSP was started and never existed when non binding offers were tabled. So, realistically it has never been advertised for sale, it couldn't have been factored in to the FSP guide price for example.
GLA
Hi mac
I think they can be branded as assets because we can sell the rights and that's an asset. If you look at the bit of the rns that starts " however' that part of the rns tells us since we went into this jv some new companies showed interested in purchasing ALL Our assets. And then it says the board has decided to go this route with this company. So that tells me the company wants jv assets also plus everything else.
JV rns was a kick up the backside for them to get a move on Mark, the JV shows Eurasia has full Russian support, any angle a buyer was using to try and suggest any weakness to get things in their favour was blown clean out of the water with the JV with the russian gov exploration company. There could also be more assets available at a later date to a buyer who plays ball now. I don't think Eurasia will take all 9 assets in the JV to production, they might, but i think most will be sold off at later dates and they'll keep a couple or a few for themselves. There's also Volchetundra to look at if they can manage to get that area back as well. They have a plan, but they can't take everything to production themselves, the district is far too large for that, it will require many companies by the end of it all imho.
GLA
Hey Mac,
That was my thinking, but the latest RNS reads as though when the Rosgeo JV was announced, it was a game changer for the negotiations. Why do you think this would be the case if it is not the intention of the buyer(s) to take these JV assets (especially the 4 adjacent to MT), too ?
Cheers
I posted about it earlier -
"The decision on whether to proceed and thereby incur all or part of the Earnout is wholly at the discretion of Eurasia. The Earnout (if Eurasia decides to proceed) will be spread over the period of the development of the Additional Assets. Eurasia has 24 months in which to decide whether to select some or all of the assets to develop. If Eurasia determines not to proceed with any assets, no consideration would be due beyond the Initial Consideration."
The work for the first 4 has largely been done and when you look via google there is already a pit and workings at one area, an old Nickel mine i believe which falls within the 8km mentioned toll treatment distance -
"Β· Four palladium, platinum, copper, nickel and cobalt open pit deposits, upon which Russian FS completed and reserves (according to the Russian standards) approved by the Russian State Committee of Reserves (GKZ).
Each of the four open pit deposits, which are located directly adjacent to Monchetundra, have already been studied by Eurasia with block modelling and open pits' optimisations performed by the Company. According to the due diligence done by Eurasia, the ores are suitable for toll treatment over distances of 5 to 8km with beneficiation and mineral processing at the proposed plant site between the Company's open pit deposits at Loipishnune and West Nittis."
They're going into those 4 assets, i'm almost certain of it.
GLA
No, it's a JV and other things are required to progress them, namely the earnout structure after choosing which ones to proceed with. The current Eurasia assets are MT and WK, we'll be heading to production with those 4 JV ones once the initial MT and WK assets are sold imho. Not long to find out either way.
GLA
Hi Awaker, donβt think so. We only have an option right now, but in less than 2 years, we will have confirmed resources, which mines we want, the sequence of extraction and whether we want to exercise the option to buy contract for >75% of each mine. Then we will have another asset and a projected income stream.
GLA
Hi folks
Does anyone know wether we can count the 4 Rosgeo mines with feasibility studies as assets yet or is it not at an advanced enough stage for that?
Thanks