RE: RE: RE: RE: great stock, sad game Matt,
I think the telling point here is that PAAS made no offer of any type nor did they even entertain a discussion on paying less for the project. The only thing that changed was PAAS's needed silver now (Minefinders)and not in the 2 years it would have taken to build the mine.
In my opinion pricing did not come into it, they just did not have the cash to buy even at a discount, if they did they would have at least made a lowball offer with Orko management no doubt desperate to put this project to bed and focus on Orex. A decision was made to buy Minefinders and retain their cash reserves and not bash their share price even further. If the FS was due in 12 months time PAAS would not be handing back the project, the timing just does not suit PAAS.
At this stage you can forget about another JV, the deal will be to take out 100% of the company. Orko will do some infill drilling to firm up the new 43-101. At this point the project has been derisked, they have already outlined a significant deposit and will have a revised PEA done in July. PAAS have done everything possible to play down the worth of the project:
- 100metre drilling spacings, no infill drilling completed to up the 43-101.
- drilling less than half the targets on the project, ie, entire project valued only on the drilling completed to date.
- adding in crazy costs into the PEA.
By the end of July we will find that the deposit is a lot bigger and the mining costs a lot less.
I will leave the last words to Geoff Burns, President and CEO of Pan American, "La Preciosa is a very interesting Project, with a solid silver production profile, long mine life and it's located in a good mining jurisdiction. At the PEA's long-term silver price the economics are very compelling; at current silver prices the Project is extremely robust.' I am sure Fresnillo will agree and have big enough pockets to pay for it.