I'm still curious as to why CATH now taking a stake now in GLH instead of Dathcom.
Some smarter cookies than me have done the math and worked out that they're valuing it about the same as previous agreement (thanks @Flekman11) so why the change?
My purely speculating:
It aligns their interests more directly to ours. Their slice of the pie is no longer proportional to Dathcom as a whole.
Their chunk is directly proportional to our chunk.
Not just of the tenement, but now also of ownership. That wasn't the case when they were taking a stake in Dathcom directly.
So they are incentivised to fight not just to make sure Dathcom retains as much of the tenement as possible (ie all of it - fuk you zijin and celestin) AND fight to make sure that AVZ retain as much ownership of it as possible (ie that extra 15% - fuk you zijin and celestin)
Some further speculation albeit I don't like it:
It ensures that there will be no concerns about there not being a clear majority holder of Dathcom (apparently DRC wants there to be a >50% owner of mining projects). This shouldn't be a problem for us - but it does leave a little wiggle room if we decided to let someone else buy a stake in the project down the line (at say $12/share
).
Some smarter cookies than me have done the math and worked out that they're valuing it about the same as previous agreement (thanks @Flekman11) so why the change?
My purely speculating:
It aligns their interests more directly to ours. Their slice of the pie is no longer proportional to Dathcom as a whole.
Their chunk is directly proportional to our chunk.
Not just of the tenement, but now also of ownership. That wasn't the case when they were taking a stake in Dathcom directly.
So they are incentivised to fight not just to make sure Dathcom retains as much of the tenement as possible (ie all of it - fuk you zijin and celestin) AND fight to make sure that AVZ retain as much ownership of it as possible (ie that extra 15% - fuk you zijin and celestin)
Some further speculation albeit I don't like it:
It ensures that there will be no concerns about there not being a clear majority holder of Dathcom (apparently DRC wants there to be a >50% owner of mining projects). This shouldn't be a problem for us - but it does leave a little wiggle room if we decided to let someone else buy a stake in the project down the line (at say $12/share