Getting screwed in a property deal is reason number four to do deals. I got screwed on most deals. Number of people you can trust in any deal is one, and that is only if you sleep with one year open. Next deal I make I am going into the room with one mafia hitman, in shades with a toothpick, and a jewish lawyer. I am going barefoot with a straw hat, a corn cob pipe, farmer johns and a shotgun. Most of the time I will spend cleaning the gun. Only thing I will say is "you do intend to live up to this one, don't you?"
I have NEVER seen a company write clauses into any deal that you could make one red cent on. They are licenses to steal. Smelter returns are not net, work clauses have loopholes, dropping clauses are all at their discretion, money is minicule, shares are not worth shit, etc... etc... Anything reasonable they will not sign. They find a mine, you get the shaft.
Did Noranda ever pay a net profits? Cominco? On Hemlo after 20 years production, Noranda says it has not yet made a profit!!!!!! (It owes 10% net profits to MacKinnon) Can you see then continuing to produce if they were unprofitable? I refused a ten dollars a ton offer on one of my properties, because it was "after payback." There never is any payback. Same company got into a lawsuit on one of their other deals on same issue two years later. (Vencan). I was right.
Mine it yourself. Only way to make money. Lassonde makes money on royalties, because he has lots of money, knows an army of lawyers. And probably some Montreal hitmen too.
EC<:-} |
