The only thing I see in the news is:
"As such, Timberline will issue 3,750,000 shares of common stock for total consideration of US$750,000 on or before February 28, 2014. Issuance of the shares of common stock is subject to receipt of all necessary regulatory approvals."
So, first, where do you see they aren't... if it is the case they're not forking over the $ ? Then, it isn't Feb 28th, yet... so there shouldn't be anything much we can see, until then, in any case ? Even if the wheels came off any "mutual interest" early on... they'd probably not be willing to talk about it until the covered period had self-terminated ? Don't know that its useful to speculate about why things are happening as they are... before we do know what's happening ?
FWIW, here's Rock Star: rockstarresources.net
I'm not exactly known as one of Dennis's major fans... more the opposite... given Dennis's solid track record is mostly about "building mines" at shareholders expense, while using bank $ to benefit the banks from the projects, about that far more than it is about "building shareholder value" (as is perfectly apparent in the 25 chart of CDE's performance).
Not the least bit surprised to see him sniffing around here, though... and, the timing is not surprising, either. TLR has accumulated a nice set of very solid prospects... so, probably wouldn't hurt TLR that much to sell parts of one, or a few, to bring in a bit of funding to advance the others. My guess (assuming it is obvious) is that Rock Star probably wants to take all of Lookout Mountain, and take it cheaply... as not much else TLR has is far enough along now to suggest an obvious reason for their (de-risked) interest... so, I'll be surprised if TLR proves willing to let go of much of that one, cheap or not, just now... and will be equally surprised if Rock Star shows any greater than expected perspicacity in considering other potentials.
Otherwise, the news appears mostly to be clearly indicative of the two elements I noted above..
TLR having a portfolio of quality prospects...
And market timing (and possibly other market practices) as perpetrated by knowledgeable industry insiders...
Rock Star is a private company... so, you'd also want to know whose $ it is Dennis is running, now, and be aware of the nature of the risks to shareholder value that are inherent in having them as partners... if there's any hint that they want to do anything more than own a few shares in TLR as a part of enabling buying some property outright...
FWIW, I will never own stock in any company that has Wheeler participating in the ownership or management.
The guy kills shareholder value... and makes his living from doing that... |
