grampa:
I haven't talked to Bema lately. It is my understanding that signed agreements, at least in principle, already exist but the 15th was the date for signing more formal agreements or the final agreements that have all the proper legalese in them. The paperwork for transfers of mineral rights, etc. is a legal matter. The question I would have for Bema is when will Placer transfer the $20 million to Bema and Star that is part of the deal? Formal closure will be a non-event, as far as the stock price is concerned with the biggest impact being Bema and Star then get $20 million. That element can't be overemphasized in this market. That is a lot of cash and, right now, cash is king to junior mining and exploration companies. It is the difference between being able to ride out this bear market and having to issue more stock to raise cash at these fire sale prices.
The lawsuit is a non-event so far. Mr. Aceti has asked the regulatory arms of the TSE, VSE, and BCSC to look into Johnson's stock sales in April and May. Also, he believes the Placer deal should be subject to a vote of the stockholders, that Bema gave away too much, and that a sweetheart deal was done with Placer long before it was announced to the general public. He says he has no hard evidence, only circumstantial evidence, and he's not willing to say what that is until the regulatory agencies have finished their investigation. Thus far, I'm not aware there is any investigation of anything so what the status is of his request, I don't know. He doesn't necessarily want to throw out the Placer deal, he just doesn't like the terms and he thinks it should be subject to a vote of the stockholders. The guy is a long term holder that is bullish on what will be found on the Aldebaran property over the long term and he feels Bema gave away too much of it in its deal with Placer. He thinks CC, and possibly the entire Aldebaran property, is a huge mountain of gold/copper bearing ore. Grades will vary but there is a lot of it. I know nothing about geology but, apparently, deposits like CC don't just happen in a vacuum.
Bema and Star are very leveraged plays on the POG for now. I don't see any junior or exploration company moving up on drill results alone until gold starts moving up and market sentiment changes. Currently, bullish sentiment on gold is 19%; as low as its been in history. If you're a contrarian, you're accumulating with both hands right now. Physical demand is at record highs while the price is at 15 year lows. Go figure. I think the big money (which is always the smart money) is quietly buying down here, big time.
Terry |
