RE: RE: American Creek
TI,
I think you're probably too charitable in your assessment of the motivations for the recent AMK insider sales. If I recall correctly, Blaney's gift of 750,000 shares a few weeks ago was at a deemed price of 10 cents. I would be absolutely shocked (but this is only my opinion) if Blaney's gift wasn't to his wife or another family member so that future gains would be taxable in the hands of that (lower income) person while he creates a capital loss in his own hands to shelter some of his future gains. In essence, this would be a very creative way of "legitimately" trading before a news release because he gave them away as a gift, took a loss, and the upcoming news was positive with the stock rising. No "insider trading" violations there, at least not according to the strict legal definition of "insider trading". As for the Burton and Edwards sales, I don't have a major problem with those other than they perpetuate the bad optics with this management team and their insider sales. But the Burton or Edwards sales are not really material and as long as they're not trading on insider information they should be able to sell some of their positions on an ongoing basis.
But you're kidding yourself if you think that a nickel of the sales proceeds will be reinvested back into AMK for drilling or otherwise. AMK's strategy is to cross its fingers and hope that Seabridge wants to throw a lot of money at it for the right to cut across Treaty Creek, plus a portion of the ore recovered (not to mention the free geological learnings gleaned from that activity). They don't have the $$ in the kitty to drill much more (if at all) themselves, and they can't go back to the market without more huge dilution and on likely unfavourable financing terms.
So from where I sit they're stuck, and all they have left is to hope for a Hail Mary offer on good terms from Seabridge. I think this is why Burton has been blustering a lot lately about how AMK has got Seabridge by the short and curlies and that it won't do a deal except on "very favourable terms to AMK". Maybe that will happen, but if I'm Seabridge I either (a) wait them out to create even more leverage on my side and buy them out cheap (especially if gold stocks correct a bit in the next bit), or (b) if I think that Treaty Creak is as prospective as AMK and TUO say it is, I buy out AMK and TUO outright and be done with it. Way less hassle and I get the whole property to boot. The second option might be tricky if AMK and/or TUO have decent shareholders' rights plans in place, but I have to confess that I don't know if that's the case or not.
So if you own TUO as a possible takeout target, that may or may not pan out for you, but that's the only viable exit strategy available to it or AMK.