High River Gold Mines Ltd HRIVF

Take out

[Power1]

Uncoverer, you have some interesting thoughts.  I too think Severstal has intention to lock this up.  I am having a hard time seeing logic in their action to take majority interest and operate armslength to severstal.  Near term actions will provide some indication of future fate.  

One can only speculate but this may be a phased approach to take out.  Prior to investing they would have had a hard time getting shareholder support for take out.  Now, a takeover bid could be force fed.  Major shareholders like Sprott have had their voting power cut in half.  

Everything will be clearer by the end of the month.  I hope for longevity but will not be surpised to see a .20 tender.  Last thing I want to see is further dilution to support an ultimate take out.   This seems to be a credible group so I don't think there will be any under handed transactions. 

Thinking further, the only value to severstal based on the current situation would be to improve the operations, share price and sell it off.  It's not like they can tap into the profits if and when HRG turns a profit so with that said, strategically I would think they will want the assets and revenue consolidated into their operations.  Their injection was not for investment purposes only and this was made clear by cleaning out MGT and taking over operations.  

I could be totally wrong and they may have very valid and strategic reasons to operate HRG. 

At the end of the day,  they won't let the ship sink as they are in the same boat as the rest of us shareholders.  I can live with a near term buy out!  Lot's of places to invest my double!  Still don't see any downside from here.  

Anyone else have any thoughts supporting why severstal will operate HRG as a majority shareholder?