RE:RE:RE:RE:RE:RE:I'm telling you rooks, one more hole like 86...The comments offered by a number of you over the last 12 hours or so have been some of the very best discussion about possible buyout scenarios I have seen. This is an excellent example of what we should be doing on a bullentin board.
I'd like to stimulate a little more contribution from you about your comments and suggestions about possible buyouts. Understand I'm an investor who strives to learn as much as I can about this and thankfully got in early with Wally, but I am no mining expert.
From my UNDERSTANDING listening to others previously, Rocdic's comment that mining experts can piece together a pretty decent estimate of a 43-101 just from a good number of drilling results is correct. Wonderstock pointed out that if a buyer does this and makes an offer prior to any published 43-101, they can save millions, and forgive me if I erred, but I believe Mepatriot also believes such an early buyout is likely.
Gravity Matters and Ratsnake point out that Wally should complete a 43-101 prior to any sale, as that would allow them to maximize the resource and hence the buyout price.
My thinking is correct in that having a published 43-101 would in fact maximize the buyout price, and it would absolutely minimize the risk for the buyer, because it would provide the highest level of documentation of the resource, so the buyer would "truly know what he is getting."
However, as pointed out by others, the buyer can get a pretty good idea of the resource from a few more really good drill reports, and I think all would agree, the longer the buyer waits, the higher the purchase price, so there is risk for the buyer whether they buy early or wait.
I don't know the answers to these issues. Gravity Matters and Ratsnake, I'm thinking maybe you might include in your thoughts that while Wallbridge would like to retain control as long as possible for exactly the reasons you mentioned (and I bet Marz would understandably love to do that = maximum buyout price with him as CEO), in fact Wally is not in a position to control these events. The buyer or multiple bidders, weighing in on the above factors, is free to weigh in with offers at any time. Given the possible explosive upside to the resource with continued multiple drill reports, they will likely decide to throw in the towel and put in a decent bid sooner rather than paying full retail after a 43-101.
I hope my comments foster additional input regarding an outstanding conversation started already and again appreciate everyone's input. What a wonderful "problem" to have!!- tndl