RE: RE: RE: RE: Somethings Up!Yes Money,
I do agree that a 43 101 is important but there are times when the proposed purchaser does not want an NR completed. A good example of that is the Cliff buy out of Freewest. Some Majors really want the drilling stopped. We have ruminated over this tactic and have come to the conclusion (could be wrong) that the Major will walk the property or check out the property. Then they get their seasoned Geos and analysts to check the core. They sign a confidentiality agreement and then are allowed to see Everything. They will then report back to the Major their findings. There are times when there is so much in the ground that drilling of any kind will increase the resource, thus increasing the Cost of the play. The insitu value increases substantially.
It would be much wiser for a major to pay 2 bucks today as opposed to 5 in a year. In Cliffs case with FWR, they made the deal and then hired the crews of FWR to complete infill drilling and come up with a small 43 101 so as not to upset the share holders. The problem there was that the shareholders were extremely knowledgeable regarding FWR and most other plays in the ROF. We tried very hard to get Cliffs to offer a few bucks. I even took a chance of making a fool of myself by calling in to Mac Watson and Joe from Cliffs during a call in broadcast for share holders. I told Mac straight that the share holders would not go for the offer which at that time was around 80 cents or something like that. After that discussion Cliffs came back with a 1 dollar offer and Cliffs shares at around 40:1 I think it was. The deal went through because of the institutions and Cliffs doing some manipulation in that regard. (just good business on their part) Everyone is happy with their Cliffs shares now because they've doubled since, which brings the offer up to two bucks. When all is said and done I believe that the pay out will be around 4 bucks a share because of the increase of Cliffs sp.
So if we look at GBB with talk of a very conservative 2.5 mm I would be ready for an offer any time. If anyone is well acquainted with Frank, perhaps it would be a good idea to ask if there have been any inquiries from any majors. No use being too specific because there would probably be confidentiality agreements signed almost immediately "just in case". Of course the share holders will generally decide the outcome of a first offer by vote. If we say NO, weprobably would win but before the second offer, things would be re arranged or pps done with the offeror offering the pp and thus increasing their sp. They would also get their own "friendly institutions" to buy shares for the second vote". they generally win on the second.
I am not for a minute suggesting that this will be the scenario here. Just something to consider going forward. Your words Money-- Spectacular drill results may not be what a buyer wants to see lolol it would just cost them more. Who knows, open pit could bring on a partner as well. Perhaps the one up the road. They could leave GBB as the operator if GBB has the parts to bring it forward to mine. I personally think they do. They sure won't have any trouble getting funding in that way.IMHO both doors are open for anything. The front and the back!
I appreciate any corrections or misunderstandings by me. TIA
Don