Who said anything about a TO from a Chinese company? FYI you won’t be able to vote on any potential sale by AVZ of its Dathcom shares, whether this happens at 100% or a lessor percentage just to let you know.
Fighting to the end and worse case scenarios doesn’t sound what you might say, “commercially strategic”.
If I had a choice in the matter I would see AVZ sell 100% (or continue to hold a 10% free carry) of its ownership of the Roche Dure tenement for say $4B, provide a special dividend to AVZ shareholders of approx $1.20 or more then with balance of funds held by AVZ prove up Carriere de I’Este and just do it all again, and while picking up a couple of other sites either here in Australia or the DRC to diversify.
On the above example I’d expect with AVZ holding approx $500M in the bank, say 10% of Dathcom, 100% of the surrounding Manono leases (already held) and Carriere de I’Este and AVZ power making dollars charging for the electricity to mining sites and town the share price would be approximately 40 cents, maybe more IMO of course. (Or flip this all around and sell Carriere de I’Este for $1B with 100% off take locked in and move forward with Roche Dure with no debt or need to take on equity parters Chinese or otherwise, just a thought)
FYI the Carriere de l’Este Pegmatite, has a mapped length of about 5,500m, and is potentially the largest pegmatite in the Manono Project and potentially the highest grade.
Fight to the death or bitter end, winner take all is good when your back is against the wall, however I believe AVZ is well in front of everything and is gradually winning its bouts with the various corrupt parties it encounters so to that end this is all a game of strategy more like chess then a punch up.
The strategy is to protect, retain or monetise assets to make the most dollars for shareholders, nothing else really matters. If the best outcome for shareholders (immediate and long term) is for some type of TO so be it.
I see a full or partial TO as an absolute win for shareholders (if completed on favourable terms of course.)
Unfortunately, I don’t think there is a high chance of a TO of AVZ’s interests in Dathcom at this time. Although I certainly do hope it happens now and it’s based on a similar outcome / structure to what I described above.
In any event, I would not dismiss the “Opportunity” of a TO so readily when there are Take Overs and there are Take Overs, any outcome that is of great financial benefit and reward to AVZ shareholders is welcome IMO.
As suggested in a previous post, seems this week is turning out to be very interesting indeed.
Regarding coming out of suspension, from what I hear it’s unlikely this week, apparently everything is all sorted in favour of AVZ which is great news, yet there are still various processes and documents to complete / finalise to support coming out of suspension. It all might be completed and written up in the next few days but sounded unlikely. As always, we shall see what the tide brings in tomorrow, and the next day and so on and so on…….
Cheers The Fox
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