RE: RE: ANONYMOUS ???I agree completely specky.
I'm very excited that OSK is now involved. I've been disappointed with managements performance and this deal should take care of that, but I'm confused as to why this deal was made.
If we were going for whats in the best interest of OX shareholders wouldn't the more prudent course have been for existing management to step aside and get some guys in there who know what they're doing? Instead OX farmed out up to 60% of our only property for only up to 8 million over 5 years and technical experience? Lets say we went ahead with the planned PP on our own and then used the money to finish the 2.5km and infill drilling. Maybe this takes 6 months or a years time but we could get there on our own and our share price would be much higher then it is now. If we were at .30 a share in a years time with a much higher resource then this exact same deal gives us less dilution, more money and would probably allow us to maintain a larger chunk of our property then 60%. Why do this now?
OSK wants this property, its not often you come across a gold bearing property averaging 5 g/t grades in open pit mining but I feel OSK came away with the better end of the deal here. How much has OX sunk into this property over the last few years? More then 8 million? Ox developed an entirely new method for discerning the nugget effect. Ox did all the work to get things to where they are now inspite of set backs and bone headed management decisions. This seems like another one.
A 5 year timeline for the prefeasibility study and we still won't be in open pit production? If this property is deemed production worthy in 5 years time (common, its a sure thing) then a partnership will be entered into and OX will have to finance their 40% share? Do I understand all this correctly?
This all starts with whats been going on with the SP the last couple months and especially the last few weeks. We should have had a SP right around .15 or more in my humble opinion which may not seem like a big change but its a 50% discount for the new investors and 50% more dilution for existing OX shareholders when doing the financing.
I guess i could sum it up like this. I like the partner but I don't like the numbers or timeline that has been established. I get the impression that instead of OX management swallowing their pride and stepping aside for more seasoned vets they decide its better for them to do this deal. I don't think its better for the shareholders, just insiders. Why do this? Do we get to vote on this?
One last question. Does OX maintain their interest % in the property with no further expenditures or does OX have to come up with their own money along the way aswell? Is it all on OSK to bring this property to the prefeasibility stage or will OX need to continue contributing along the way?
This isn't a buyout or a JV in the tradtional sense, it almost seems like OX is giving away up to 60% for a very minimal gain and virtually no risk or downside to OSK.
Maybe the more subtle points of all this have been lost on me. Do I have all this about right?