Rolly
I don't like the deal only for dilution and I would be happy if Peruvian went 1:1 ratio. The reason we have 12M in the bank and you have nice property. Market conditions discharge properties of this status at this time by attaching very limited value to them. I do understand that this is different calculation while negotiating the deal but still, I would think there would be more happy feces if Peruvian showed more of the tooth. Deals are not made on fair basis to all. They are made fair or good for those who have strong hand and PVO was one which suppose to have that.
Rosia Montana looks promising but sampling is the least what market will pay for and Bradstone who hates dilution(for all the reasons) will not be shut up by cheering crowd who believes in it. Drilling, hundreds and thousands of meters, feasibility and production is what shareholder wants, because this can only justify the division by almost 3.5 and help appreciate the share value of large company like that(62M shares).
I don't believe in good heart of Bradstone and his moral calls for democracy. They want to kill this deal, take over the money and run(my last post). I choose PVO and Gabriel as they offer me award at the end of the tunnel. Bradstone with their 18% of ownership did not attempt anything but they were waiting till all of us will bleed out of our shares and than hungry for anything will give them freehand on dealing $12M, as soon as next GM.
Henstridge did the placements on weaker properties in the past. Rosia Montana seems to be the best thing this outfit can put their hands on, why not let them? Nobody makes mess because John Doe lost few thousands, but when brokerages are in the red they will make sure to regain some of their losses by letting their hounds do the chase.
Bradstone is a bad news. Certainly they may feel that it is unfair for PVO to make them small again, although the unfairness applies to all of us, mind you, we want PVO to grow not to be robbed.
As to price for the Mine. Aurizon Gold is buying Casa Berardi mine from TVX Gold for about $US13M and NSR of up to $10M. Mine is located in Canada, past producer of 80,000 oz per year. Hardly economic in this conditions, but equipment, plants and infrastructure bears the tag of $US100M. Hardly economic for TVX but not to Aurizon which is use to expensive labor in N.America. Read about that Mine and compare to Rosia Montana or at least what we know about it. Does this deal will still look just fine to you?
Robert. |
