What will NOT's reponse be?

HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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retirerich

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What will NOT's reponse be?

posted on Nov 23, 2009 08:48AM

Here is the essence of what I posted on the FWR discussion forum this morning. It directly relates to NOT, so I am posting it here too.

1) The breakup cash value of today's FWR share is $0.55 plus $0.06 (QUC value today), or $0.61. If the stock trades at $0.70, then we have only $0.09 cents of value in the "new" FWR.

2) The deal means lots of cash for drilling for Cu/Ni and PGMs over the next 2 months. If they hit, there will be an immediate bidding war and much higher prices.

3) But there may very well be a bidding war anyway. Maybe NOT should go for a 3:1 for ROF only, which would mean $0.91 total, based on Friday's price of NOT. NOT keeps drilling near the boundary of AR-12 and NOT, and they know how to find the deep stuff, so they must believe in the potential for Cu/NI or PGMs on the FWR wholly owned (and don't forget the JV with KWG and SPQ. They could get the potential and spin off the chromite to Cliffs for loads of cash and secure access to ROF as part of the deal. This would be hugely good for NOT. I look forward to seeing what NOT's reaction to this will be.