RE: Sim and grumpy--->I don't think that is likely after taking the project from square one, unless they have exhausted every other available option, and we are nowhere near that point yet. Additionally, I think most people who would have voted for a hostile takeover have been shaken out by now<---
Stocky,
Keep in mind that some exploration and development companies are exactly that - they sell mines almost ready to go. That being said I don't believe that's AUA's plan. If we were talking about a hostile bid - the present market cap is 75MM. Add a premium to that and it's still a couple of Pez dispensers to the big boys. But no, I wasn't necessarily talking about a hostile bid.
Like I said in early Feb, I have been involved in three junior miners that have been bought out and make no mistake - it is shareholders like us that are at the whim of the big boys. With no competition to a prospective offer we will be low-balled. It just makes good business sense to acquire for the lowest amount possible. It's not in our best interests to be taken over prior to be being in production.
Management usually gets offers they can't refuse that include significant remuneration and seat on the board or an executive slot. The three stocks I have seen go to acqusition are Lionore (nickel) Rio Narcea (nickel) and Eurozinc (copper/Zinc).
Eurozinc went for a fraction of its future value. Eurozinc was ahead of AUA - with one mine just beginning production and a second in development, the stock was acquired by Lundin for about 16% more than the previous month's average value. This was a stock only deal.
The Rio Narcea offer by Lundin was actually under the trading price of the stock by about 4%
LionOre on the other hand was in a bidding war between Xstrata and Norilsk with escalating bids until LionOre recommended shareholders accept Norilsk's $27 bid from $16.
Fact is no one believed that Eurozinc or RNO would sell out. We could all taste the dollars that were only a year or two away...
GM