Thanks.
Searching the title lead you provided... seems that everyone that matters carried the news... but, it isn't listed among the headlines on the company website ? Hmmm. They should probably fix that.
"RocksTar continues to seek financing"... is interesting...
Does that mean that RocksTar conditioned their agreement on a successful conclusion of a hunt for money... or did they commit to providing money they didn't have the authority to commit ?
My opinion, given the proofs in performance, is that the company is probably dodging a bullet by avoiding the development of any closer association with Wheeler, other than a bit of $ showing an expression of interest and confidence in the value as an investment, or an agreement on an outright sale of a property. Maybe he didn't end up dragging all the most problematic financial baggage from CDE along with him into the new private company ? But, then, pretty hard to see this as providing evidence of an auspicious fresh start.
Wheeler's faults, though, have tended to be most apparent in deals that don't work, even after they're done... because they're lopsided... exploitative... badly structured... impossible to make work... often while using "sharp" finance and financiers tricks as a tool to screw others. He's not a problem because he can't identify value in rocks others have already proven... but because he appears to lacks interest in generating value with others, in favor of taking it from others. A "game player"... not a value builder. Again, look at a 25 year chart of CDE... and ask who benefited, and how, from "growing" CDE into a large producer... while the company growth meant the value of shareholder investments shrank over time.
I also wouldn't count on him to help keep my leases current ? Not a detail guy, apparently. Perhaps that's what we're seeing proven, again, in his deal with TLR ?
As far as your "So I now assume since they did not meet the terms of the agreement it is void and Timberline is free to talk with others. RockStar wasted managements time or deliberately delayed progress towards seeking alternative financing by imposing the no shop/exclusivity clause?"
If there was a plan to obstruct, waste time, and deliberately delay progress... never intending to perform in meeting obligations... I'd naturally be interested in evidence and proofs of that.
Like the other issues, you can't really determine much without actually seeing the language of the agreements... or without knowing who said what to who, etc., and, we're not likely to ever get close to getting any of that... unless there is some legal action that results. But, there's one issue in the letter of the language used and the law... and there's another, that also matters, in the element of the value in a handshake, and being honorable enough to meet your commitments. Both matter.
I can't imagine generating this sort of failure, early on, is going to help RocksTar much in lining up other patsy's to try to takedown... Ah, wait... I can't imagine this sort of failure is going to help RocksTar in finding other friends to try to help with plans to advance their businesses...
If the object put in train here was only about RocksTar's financiers using RocksTar in generating interference and the plan they had was only intended to obstruct... that will probably out, in time...
If that, it seems to me a particularly desperate and sloppy risk for someone to take... but, it's consistent with other instances in a pattern I've observed, before...
Otherwise, I'd say that the failure obviously should mean TLR has no obligation to comply with the terms of exclusivity... but, the easiest way to prevent them from claiming TLR has any fault will be to wait until the end of the Feb expiry date before "shopping" anything.
I'd not expect any news until after that, in any case...
As a practical matter... informal discussions are unlikely to be, only rarely could be, or are really impossible to limit only by the terms of early stage agreements... particularly if the agreements haven't led anywhere, and haven't been enabled with the most basic consideration required in performance...
Odds are, we'll not learn what the cause of any rupture was... whether it was a simple lack of performance by RocksTar's fearless leader, who overlooked some detail and thus over-stated his capacity to perform, or if he was blindsided by a "partner" who knowingly pulled a rug out from under him for some reason... or if some other show stopper popped up before they had a chance to make any progress. RocksTar was probably angling to buyout the entire mountain, and only that, like they did with the project in Oregon, only while not saying that was the plan up front... with TLR not ever intending that they'd sell out that project, or surrender control ? All speculation, of course... Maybe it's nothing other than RocksTar not having the financial ability to manage more than one project at a time... and they got caught double-booking allocations when they did the Oregon deal ?
A deal imploding due to non-performance at the bottom of the market... is pretty hard to explain... unless it involves purposeful manipulation, or ego driven over-promising...
So, it will be worth following looking for explanations... |
