buybio2, respectfully, with your view...
Respectfully, I just posted what they stated within their PR and how I interpreted such. As for the details to why or how such would work... I don't know? Without details, it is very vague to know for sure. We would have to wait to see if such option is selected and then to see the details released from such. Before you read on, understand that the below is simply how I am viewing things and could be far from the gospel.
If this second NYSE company truly believes that SRGE is “potentially” worth over $5.7 billion as has been indicated as the premium value of the property, then maybe they might not mind paying $680 Million for a JV deal. If I had to guess, the JV deal would probably result in giving the NYSE company the majority control to include rights and all that comes with such territory. With SRGE getting a $680 Million cash injection, it could mean that a huge percentage of ownership of the property, rights, etc. would go towards the NYSE company.
If that second NYSE company felt that they were in strong jeopardy of losing the Cinco Minas property to the first NYSE, then they might offer a little bit more than the $550 Million... ie the $680 Million. This is why the second NYSE company popped up to offer such in my opinion. The second NYSE company would no doubt feel that they would have to make SRGE an offer they can't refuse. This would include throwing in not just the $680 Million in cash, but an offer to give them still a little piece of the pie. I'm not sure, but maybe a 90/10 or 80/20 JV split of such with the second NYSE company getting the larger parts. In my opinion, this is the only way SRGE would even entertain another option to execute instead of the first option from the first NYSE company.
As for justifying it within their financials, there could be some way where maybe some of it is cash and some of it is shares of the NYSE company. This I am not sure of. We would just have to see how such would be done if that option is selected to pursue.
Remember, the $550,000,000 amount is considered to only be 20% of the value from the Cinco Minas property. That’s a lot for a quarterly dividend to be based on in my opinion. Keep in mind that the Cinco Minas is already operational and the greater the money that is put into the property the more valuation that would be pulled out of it. I’m not sure how long will it take to achieve any significant revenues/profits to warrant quarterly dividend payments, but I am willing to hang around to wait it out to see what further materializes.
I do agree with the thought that a J.V. agreement would most likely entail funding of the Cinco project in stages. However, where you see that it spells out more ambiguity, I see it as spelling out more clarity to justify why it would be easier to deliver payments to SRGE in stages… quarterly stages… versus just a one-time injection. Bottom line, we have no choice except to “wait and see” with SRGE, but regardless of what the details are for either deal, I think it would be in the best interest for SRGE shareholders.
v/r
Sterling
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