Dale,
I would say the legal D.D. would be Tracer closely examining the terms of the contract for which the option(s) are for and/or cut the best deal possible. Remember, this is only an option.
The technical D.D. would have to be the examination of the property, i.e. surveys, reports, site examinations, etc. They need to be absolutely sure of not only what's there, but what can Steve Jacobs do to increase production. One sentence at the end of the fourth paragraph states "Preliminary evaluation indicates that 'significant recoverable reserves' remain to be produced. Undoubtable there are some unknowns here.
I think perhaps any reservations that investors would have at this point is with the financing that must take place. If this is a good deal and they execute the option, let's see how they plan to raise the money needed for the purchase amount(s). Remember, they are cash poor and there is no mention as to amount needed to fund this project. Let's hope their new director David Robinson can step up and do what he was brought in for without giving away the store. According to their press releases, that's why he was brought in.
I guess you might say Mr. Robinson's reputation is now on the line wouldn't you? Interesting, I've still not gotten much information as to his background. Seemed to be invisable at the companies which he has been at for some reason, but from now on he's going to be highly visible. That's the power, or curse of the Internet.
This could be a major turning point for Tracer. I believe very shortly we'll see a major turn for them. Upwards I hope. |
