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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Amark$p who wrote (130791)	4/29/2010 8:18:12 AM
From: Ed Ajootian	Read Replies (2) \| Respond to of 206154

amarks & marvel, NiMin Energy (NNN.TO) -- Legacy's reverse acquisition of NiMin Capital was merely a vehicle by which Legacy could go public. Usually when that sort of reverse acquisition occurs, the name of the nominally surviving entity (which, because this was a reverse acquisition, had been NiMin Capital), gets changed to the nominally "acquired" company, but they instead changed it to NiMin Energy. I never got a good explanation for why they did this, but I note that there is another Canadian publicly held company using the "Legacy" name, and my hunch is that they are just using the NiMin name as a place-holder until they can see whether this CMD process works, in which case, why not "CMD Resources"? You can bet that they were on the phone with the drilling companies last week. They are only going down 4,000 ft. so they don't need a very powerful rig; there are tons of those things just sitting around getting rusty these days. However, on the other side of the coin, the Bighorn Basin is not exactly a hotbed of activity these days so there might not be a lot of available rigs in the immediate area. Net-net my hunch is that the drill bit on the first rig is turning to the right by the end of next month. Then, if they have the guts to add a second rig, I would expect that to come on about a month later (or in any event, after they have closed on the term debt facility). Marvel, regarding the warrants, these certainly will keep a lid on the stock price in the near term, IMO. This is a good thing IMO, it gives folks a chance to walk in an load up on this even after the company has gotten cashed up, for only a modest premium to the price it was trading at pre-financing. Ultimately the overhang is not worrying me; all we need to see is Weisel initiate coverage with an Outperform rating and a lot of that overhang should get taken out at that point. I see that Weisel has their annual Energy Conference coming up in June. It would not surprise me if part of the deal for the equity offering was that Weisel would invite NiMin to present at that conference; if so that would also chew through more of the overhang. The warrants can be called if the stock trades over $2.10 for something like a month straight, so we are not necessarily going to be stuck looking at these suckers until their normal expiration date (9/11). I know at least one analyst for another firm that is looking at NiMin closely, and may write them up at some point in the next few months.