in regard to your comment:
"Interesting point about ANO. Do you think they are just bundling it, doing what they do best, exploration, and will then just sell it to a major without more dilution? Issuing shares, warrants, and options on this one at this price would be a travesity, but prepare for it with this HD outfit."
ANO can likely NOT sell to a major for at least 5 years, this would jeopardize BEE status. My recollection is Pelawan is locked in for a minimum of 5 years. Pelawan must retain 51% of ANO ownership, thus this will likely limit ANO dilution because Pelawan does not have the cash to retain their ownership percentage on any new material PP. Currently Pelawan owns about 58%. Further, ANO has no need to sell to a major, they have a 50:50 JV with AngloPlat on both properties. To comply with BEE law, AngloPlat will likely give preferential treatment to development of ANO properties. Unless HDI can somehow get around SA BEE laws or the BEE laws change, possible but unlikely?, then ANO will have to pay dividends which is allowed under BEE and Pelawan would get their 51%+ dividend payment just like all shareholders.
Thus in the instant case of ANO, I do not see how HDI can issue any new material PP without violating SA BEE laws. |
