More Drilling & OSK Take OverCanada 7 wrote: Who said these before andrepeatedly? Now, even Sailor is agreeing on this after all thesediscussions.
I never disagreed with you on whether their would or wouldn't be more drilling. I disagree with you on pilot mining, stock buy-back, and management share purchase as mechanisms for raising the stock price and promotion, and more particularly their appropriateness as creating short term, or long term value for shareholders of the company. I've never expected or said OSK will buy us out quickly - go right back to my posts in November 2009 where I said this J/V was more like a long courtship leading to a marriage. We have differing opinions, I still respect you as a person and I've no particular personal animosity towards you or anyone here. I try to just stick to facts and proven business principles.
ngobe wrote: I personally do not think OSK will wait for the true potential of thehard asset (i.e., resources) to be defined before they make a takeoverbid... if the current results and specially the RC regional drilling results onthe claims surrrounding Goldboro demonstrate the potential forsignificant upside why would OSK wait for that to be defined when theycould make a bid based on the existing resource and results.
Here is my counter argument -- if my assumption outlined in my previous posting is correct (namely that OX is letting OSK explore its claims but the J/V doesn't cover the claims that OX staked on November 26, 2009) and OSK finds gold on a claim outside of the J/V claims as a result of the regional exploration program, OX is in a much stronger position to negotiate a higher price because OX owns the claims where OSK found the gold. OX could then use its $2.8MM in the bank to go and drill onthe targets and raise the company's resource and ensure OSK offers a betterprice. Given all of the past producers in the Goldboro/Issac's Harbour/Drum Head areas the probability that OSK or OX is going to find gold on one of those 980sq/km is pretty damn good. IOwning all these extra claims outside the J/V agreement has given OXmore leverage to get a better price.
Now with this scenario in mind, ask yourself did CFO or Brett get the better deal? Yup they got a lot more money but I'm not sure they have much more upside on their deals... they're done because they sold the whole thing all at once. OX has staked something like 1/8th of the province of NS.
This is why I disagree with all the proposals to spend the cashin the bank -- keep it in the bank so you can use it defensively if youneed to.
What we are watching is a very very good game of corporate poker. I love it.