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Mountain Lake Resources Inc V.MOA



TSXV:MOA - Post by User

Comment by MudCreekeron Nov 30, 2010 10:02am
179 Views
Post# 17775801

RE: RE: Lots of Good Reading Over....

RE: RE: Lots of Good Reading Over....Talk of a merger is premature to say the least. 

The end game is clearly a buy-out by a major, but the biggest fear is having that happen too soon, before the real potential of the property can be demonstrated, which means at a relatively low price.

To a large extent, the JV protects us from that.  No major is likely to attempt a hostile takeover of two separate juniors to get one project - the risksof something going sideways are just too high.  And management knows this.  So I expect that this will remain a 50/50 JV until management is ready to sell out, at which point it will be combined into one company.  There are a number of ways that could be handled, (a simple merger, or each company spinning off their interest in VL into a new company, or  any number of other approaches), but that's likely many months away. 

Right now they have to get on with proving up VL - perhaps even to the bankable feasibility study stage.  And MAR's management knows exactly how to do that, having done it before with the deposit they just sold to Stillwater.  I'm expecting great things here.
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