GREY:XMTTF - Post by User
Post by
juststocks500on May 23, 2014 11:42am
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Post# 22592307
2 sides to the coin (cont)
2 sides to the coin (cont)2nd and 3rd order effects are a better indication as to the potential way ahead.
It seems obvious to everyone that if nothing is found at Blackflake East, the 2nd and 3rd order effects equal corporate suicide for XME.
On the other hand, great results will invariably lead to an uptrend. 2nd and 3 order still need to be considered. These would include 1M shares in the first stage along with 230K expenditures on a MEK property, another 1M shares in the secondstage and even more money on a MEK property.
Consequently, If corporate suicide has already been addressed on the one side, then what and why on the other side is so positive? I believe that this move needs to be understood like the latest rounds of financing were. A strategic positionning informed by science.
Every move XME has made in 2014 has been based on results informed by science and only after having been informed by science. Every move a caution one in very incremental steps. Prudent to say the least.
I would not put too much weight on ZEN's not acquiring everything in the area reasoning. They we're looking for something else and found Hydrothermal Graphite. They held the belief they had the only source. By the time the dust settled others had stepped in; MEK et al. whilst otheres were already in the area. The assumption of having "the only" local source after such a large discovery should have been picked up as "dubious" to say the least.
As for the JV with MEK, I don't see this as the end all and be all. A bunch of small plays getting together with minimum cash does not equate a great opportunity or business deal. But what would it mean to a large, very large developper to suddenly have his options restricted to one?
If ZEN is purely graphite, it either needs to bring the mine to production or sell to an interested miner willing to take on Graphite. Restricted options.
If XME proves up lucrative hydrothermal graphite AND ORES that big miners already produce, then there's more synergy in that play for them. But the option for big miners just went down from signing with MEK (the all channel anomaly) or XME with multiple anomalies and the edge on MEK.
When those bloody results reveal the potential for those anomalies, it'll be an all or nothing revelation.
High risk, high reward. The decision point to hold XME for another day or 12-18 months is near.
The suspense is killing me.