I think there are many reasons for these suits, which are different than opposition to mining roadblocks even though there could be shorting of stock in both instances. Mansfield in Argentina couldn't drill their lead prospect for years because of a legal dispute regarding staking and boundaries.
My guess is claim jumping is motivated by the possibility of getting a piece of a valuable prize either through a poor legal system that may give some appropriation to a marginal or fraudulent claim. Or, the action is brought on the basis that it will be easier to buy the litigant off than spend the money and time in court.
Whatever the scenario, handicapping the outcome of these matters is no science. Gabriel, Manhattan, Farallon, Meridian,
Mansfield, the Windy Cragg deposit in B.C., I am sure many people out there know of many more.
I sold my Gabriel almost a year ago. Quite simply why would I bet on the local politics, esp as the then President of Romania had openly declared his opposition to the project. Once you realize the enormous cost and logistical nightmare of needing hundreds of people to sign their homes away and the ability of the NGO's to muddy the waters and drag things into court,you know you have a mess that is better left to other investors. There are lots of prospective investments and other tremendous values around that do not have these encumbrances. It is simply impossible to handicap these situations accurately. Where is Manhattan's Tambo Grande now, where is their share price? Meridian's Esquel property these things are worth billions, there is value there but when or will it ever be realized? If everything gets straightened out and investors make money then I am happy for them but there isn't any investment with those kinds of hurdles that are must haves!
This was the only point I was trying to make in the first place. Value yes, the rest is guesswork.
Cheers,
Ogi |
