Replies to post #20395 on Petaquilla Minerals Ltd. (fka PTQMF)

[Implanting]

Hmmm, funny the Company hasn't said anything about the Red Kite deal being defunct? In fact last word on that was that RK was still doing their DD. Guess that's still working? It's only been about 3 monthes now since we were supposed to hear something. Not real surprising with this top-notch management team.

[mjkiii]

Welcome to IH DigiTech.

I am not sure about the spin out of PDI. The company has kept the numbers separate for some time now and has been talking about this matter for several years. Once in 2010 or 2011 I think the date for a vote was filed, but then canceled for what I remember were very good reasons. Then in 2012 preliminary PR another date was committed to also. I think if they come up with the financing they will have to go forward. However, I certainly see the merits of not doing so if that will help the FCF from the sale of aggregate.

My question is: Can they not protect that free cash flow by using the price point between PTQ and PDI for the aggregate? Spinning out this relatively small contributor to the overall revenue of the company would seem to simplify the whole process, as it seems to take up more time and effort that could be used elsewhere.

The drop in the price of gold certainly made the Red Kite deal much less attractive. They were wise to just let it die IMO. The increase that we now see in production also makes the DB deal less offensive.

Glad to see someone with some knowledge joining us here.

[Lojiko]

Welcome aboard, DigiTech. :-)