RE: Metalex's financials ...Heavy, you recall I infered that all CEE would be covered for 2010, and directed you to the James Bay work. Good find within the MTX financials. We'll have to wait for the MM&A for the fine print. That does of course, leave us with the Joseph problem... fortunately he's a reasonable dude that cares for the shareholders of this company and his Wawa neighbors.
I don't think Dwek wants to be in the mining business. His business is to provide tax relief for investors because the gov't allows certain exploration costs to be passed on to the general public in the form of flow-through shares, sometimes up to 150% deferral on one's invested money. If he sells his shares in the public market,, less than the cost he paid, there is no capital loss, since the adjusted cost base for FT shares is 0. The gov't does not allow double write-offs. He sells shares from one year to the next, to continue his business and provide a new round of investors with tax relief. I would think that Dianor would have preferred not to go this route, for obvious reasons, but with other potential financing either in progress or delayed, they had to do something by years end to rationalize their own CEE Dwek may continue to sell his remaining shares and buyers will be there to pick up his shares. There will be no appreciable price increase until the funds are in place to allow the bulk sample to proceed. What is happening with the other Joe is another matter. Will he strike a deal, will he agree to another extension until financing is in place or what will he do? The Algoma royalties have been in place on the extension property for years. Perhaps prior to Joe optioning the property, not sure though, but it certainly has been apparent for years. Any negotiations with Essar would most likely be struck by any jv partner or Takeover company. Happy New Year everyone.