RE: RE: IIROC Forces Rokmaster's hand!!! This fee, while high, has nothing to do with our company/stock price and has no impact on it.
It was ridiculously high and still high, but still has no impact on us.
Furthermore, there are reasons why companies pay extremely high fees for things - sometimes they're completely unjustified and excessive and even illegal, and sometimes there may be more to them than we can see (IE - if you motivate people properly, you sometimes get things done much faster). Who knows?
All of the juniors are down due to Europe and funding/financing worries.
Once this deal is closed, while not optimal, it essentially guarantees that AMG is funded for at least 12 months and removes immediate liquidity risk, which i'm guessing is another reason for the poor stock performance.
They will no longer have to pay for anything at Pinaya and can focus 100% of their energy on Red Mountain and start to get things moving there again, while RKR focuses on moving Pinaya forward. Considering RKR's management success with Rio Alto, it seems like a pretty good bet.
AMG clearly has to do some kind of a JV/financing on Red Mountain, but based on the last few seasons' results, it would well be worth moving the project forward and sharing some of it rather than going another season without any progress at all.
In my opinion. for a company with a $5 million market cap, this seems like a pretty good risk-reward ratio.
If even one of these projects grows at a decent pace, the stock should move up considerably.