Hello Fix
I am not sure which property you are referring to?
DBRSY has no interest to my knowledge in Back Lake, which is the property that IAR has a piece of. Kennecott can back in on Back Lake, but not DBRSY.
DBRSY of course has or had 60% of the Marsfontein Farm claims on which the M-1 is located, but IAR has no participation in that play.
Regarding the latter, I don't believe SUF has any mechanism to oust DBRSY unless they were to fail to pay a bill or meet some other contractual obligation which is unlikely. Regardless, DBRSY would appear to have publicly demonstrated that they have some inside pull with the RSA and all competitors I am sure have duly noted this reality.
I doubt CJ would be foolish enough to tilt at that wind mill again, regardless of the obvious business and moral concerns. The stark facts are that DBRSY has effectively undercut SUF's price again by demonstrating that the playing field in the RSA is not level. In the market's eyes, this calls into question the security of SUF's Klipspringer tenure and title. CJ does not need to give the RSA or its corrupt insiders any excuse to impose a similar “deal” on SUF or to make the media and market any more aware of the stink of the situation than it already is.
Sooner rather than later, SUF is going to have to face facts. They will have to shift gears in mid race again and while completing Klipspringer's production potential, curtail further RSA exploration/expenditures and quietly redouble their NWT exploration efforts. SUF must de-couple its self from the markets perception that it is a one-horse wonder running in a fixed race. As I have maintained for years, to see real price stability and appreciation, the market must recognize SUF as a diamond miner with multiple properties, the most profitable of which are in a free market beyond the graft and grasp of third world corruption. Right now, the greatest potential in that regard is in the NWT.
While I believe SUF continues to sniff in Ontario and to a lessor extent, Quebec and Labrador, those areas remain unproven. Despite potentially prospective geology, exploration in the Labrador and James Bay areas is extremely difficult due to overburden and marsh, however, the market is well aware that any discovery there should, be more economic and speedy to develop than in the NWT.
Regardless, the %'s only exist in the NWT and the market is predisposed to grant credibility for any play run by SUF on the Slave Craton. Having said that, I think the market is losing patience with SUF. It is going to have to demonstrate success up here, probably this year, or I fear it will be taken off quite a few radar screens.
Regarding your suggestion that DBRSY sold 50% of the M-1 to raise cash to take a run at MPV or WSP. I doubt it. That's small potatoes for them. I doubt they even need to raise cash. At MPV's capitalization or WSP's, DBRSY could swallow them whole without a hick-up. They already have deep pocket and should they need to, they could raise all the $$ they might ever need with a few phone calls.
While I am sure WSP's apparent stone quality is of interest to DBRSY, the mine type probably is not. My guess is that it would be more likely that they would offer WSP mine development financing in return for exclusive marketing. That is after all, their prime concern and where the real profit is to be made. I also have my doubts that they will try to swallow MPV. Rather, they will allow MPV's capitalization to remain low, and as the mine and other pipes need to be developed, they will assume growing %'s of the play in lieu of MPV cost sharing contributions. Lets face it, no other miner has the in-house loan security DBRSY's has.
MPV can't afford to dilute much more at these prices before the market relegates them to LTL status and they are not in a position to secure reasonable financing even against the collateral of future production.
Management must be hoping against hope that a considerable number of new diamondiferous pipes are discovered this summer. They can issue a limited amount of paper into the resulting market interest and put a nice bank account together without giving up a larger share.
Regardless, DBRSY already have or will have what they really want from MPV and probably GGL, exclusive marketing rights.
I apologize to the thread for the OFF TOPIC discussion.
Regards
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