The more I think about it, it's a no brainer on the Erin Deal.
Erin investors have been waiting for assays from Piskanja for close to a month. All of a sudden, with the assays not yet released, Erin announces that Antares has hopped in.
I think that the Erin management has been decent enough to allow Antares an opportunity to review the situation and results before the PR machine is rolled out which may very well result in a return of Erin's stock price to return to its former highs (approx. C$5.00).
Antares' management is conservative. Therefore, Erin must be for real and this deal must make complete sense to the Grays.
A possible reason is that Antares is getting involved in Eastern European industrial metals to diversify, coming in to the action at the tail end of the fantastic deal that Erin cut for itself on the borates and possibly other mining situations under option.
I have done some research and there are a variety of mining opportunities over there, including straight gold-silver, polymetallics, industrial and base metals. I can see Antares leading a syndicate in partnership with Erin that would include RAPPA and the Standard Bank.
Erin's connections, Antares' operatorship, RAPPA recovery plants and Standard Bank money. It is entirely possible that Erin and Antares would bring in majors down the road on one or more of these properties, in order to leverage their position.
Erin may very well have a "lock" with the borates and other major situations lined up. Antares, RAPPA and the Standard Bank could be allowing them to lock up all of the other situations before other Western mining companies flood in en masse.
Knowing the Grays, it's just way too simplistic that the Ojolali and Toodoggone are worthless.
On the contrary, if the results were poor, wouldn't it behoove Antares to make full disclosure now and get it over with while the stock is this low? After all, where would the stock fall to?
The Grays would be smart to get bad results announced prior to year-end. If they announce bad results with the stock even C$0.10 higher, they have screwed the new investors by holding back.
Using that logic, the results from Indo and BC must be economic in the least. I feel they'll more than likely be incredibly spectacular.
Erin was looking for 7 million tons. The drill logs were better than anticipated. If they end up with 10 million or more tons, the property is worth $2 billion in net profits based on a $150 cost/ton and a minimum selling price for unrefined borates of $350!
As I said in an earlier Erin post, each ton of borates is the equivalent of 1 ounce of gold, and I had in mind $350 gold!!
10 million tons of borates = 10+ million gold equivalent ounces.
We are the unwashed and unknowing, but it is an article of faith with me that Antares is not stupid, nor is Erin.
As The Fixer said, there are a LOT of undeveloped mining properties/abandoned operations there. Erin, with the help of Antares and possibly Rappa and the Standard Bank, may be going for the whole shooting match! As the year progresses, things should become VERY interesting.
Don |
