John:
Yeah, Ward is really an uninformed idiot, isn't he? Based on the general consensus of this thread, that's the only conclusion one can come to. I wonder if we'll now see a lot of Ward-bashing to match the Johnson-bashing. I suspect not.
Here's something to think about regarding the Placer deal. Placer paid C$6.20 for its equity purchase of AZS shares. I'm not certain what Star was selling for at the time but, I believe, that price was about a 35-40% premium to the market price, a good premium by any standard. Since the "efficient market" posters on this thread are of the opinion the market knows all, I would assume they would be pleased to get a 35-40% premium above market price. After all, the market knows all; therefore, the market price of AZS must have reflected fair market value.
So... if Bema had sold Star to Placer at this premium over market price; i.e., C$6.20, it would have received about C$82 million, about US$60 million. It then would have had to fund 49% of the mine at CC and any other mine that goes up on the Aldebaran property. Under the Placer deal, it received US$10 million in cash, Placer must pay the first US$200 million in an equity contribution to the JV, which is US$98 million as Bema's share, and Placer must arrange and guarantee all mine financing. Bema gets US$108 million and no obligations for any debt while under a sale arrangement based C$6.20/share, Bema would have received US$60 million, had to pay its share of the feasibility study and drilling costs for Aldebaran, and been on the hook for 49% of mine financing. I call that a good deal. This if from the perspective of a merged BGO/AZS since I see no point in keeping Star out there as an independent entity any longer and expect Bema and Star will merge at some point down the road. Star stockholders will then have the same 49% piece of the Aldebaran property and the upside from Bema's other properties. As a Star stockholder, the sooner the better as far as I'm concerned.
Terry |
