High River Gold Mines Ltd HRIVF

RE: RE: RE: Wow, did you see the news

[Critical_Mass]

For sure, he was only here to facilitate HRG's takeover by Severstal.  As such, his removal / resignation is great news and should be seen as a moment of joy for minority shareholders and Severstal admitting defeat in acquiring HRG at a fire sale price and their willingness to move forward to some new stage.

Iwas heartened to see the press release stressed the board is actuallymeeting to discuss the replacement.  It could be a rubber stamp process, but it has to be better then now as they likely will bring in someone to actually grow this company.  This process should be telling as to what Severstal is thinking in re to their plans with HRG.

There are 4 general options I can see from Severstal at this point, 3 of which they can realize a return on their investment.
1) They buy us out at a higher price and integrate the company  completely as a division of Severstal.  No matter what they do I think they realize they are not going to get buy in now from shareholders for a song.  So the next offer should be considerably higher. 
2) They operate the company profitably and push the shareprice to apoint where they are comfortable selling either their stake or likelythe whole company to a 3rd party. 
3) They operate the company profitably and realize their return throughdividends and capital appreciation.  This means paying us too.  Theycould also use surplus cash next year to buyback stock and further increase theirstake if the stock continues to languish.
4) Maintain the standoff

All options except 4 should mean a higher share price for us over time.  The status quo is just a useless option for everyone. 

Who knows maybe those rumours about the funds meeting with Severstal were true and the removal of the CEO was a concession to them to help bury the hatchet and move forward.