Poison Pill Here's more of my ramblings for anyone who cares to listen. Am I the only one excited here about JAG's new poison pill? Question is, why now? Why not in Dec, Jan, or Feb? Why wait till now? Why do we need a poison pill at all? The reason, I think, is quite simple: a friendly takeover deal is immenent and they don't want it thwarted by a rogue hostile bid.
Read between the lines here:
"The Special Committee continues to advance the process and work with its advisors, interested parties and their representatives to maximize value for Jaguar shareholders. The Special Committee believes that important progress has been achieved in advancing this process." Mr. German said.
I've never been part of a takeover process before, but I read 'important progress' as much more than superficial. I believe they've entered an advanced stage of the process. Unlike the analyst at TD who is distracted only by numbers, I see the big picture and I like what I see.
Notice also that the analyst at TD paid absolutely no attention to this other important aspect of the update from JAG, which at a depth twice as deep as the original estimate, the new estimate could be double the original:
"During the quarter ended December 31, 2011, Jaguar continued with the 30,000-meter drilling program at the Cipoeiro and Chega Tudo ore bodies. The goal is to upgrade inferred mineral resources to indicated mineral resources in the lateral and deeper portions of these known deposits as well as to increase inferred mineral resources.
The results to date confirm the potential to significantly increase gold indicated mineral resources at the Project's Cipoeiro and Chega Tudo deposits, currently estimated at 69,887,500 tonnes of material at a grade of 1.12 grams per tonne totaling 2.5 million ounces. The infill drilling confirms the mineralization is consistent with the grade and width indicated from previous drilling programs and the step-out drilling demonstrates that the mineralization is persistent down-dip in both ore bodies as a pervasive pyrite-gold assemblage associated with NW-SE shear zones. Preliminary results from deep holes FCTU0023 and KCT420 at Chega Tudo suggest the extension of the mineralization to a vertical depth of at least 300 meters. This is a significant increase over the previous resource drilling campaigns at the Project that had delineated the mineralization down to 170 meters vertical depth at Cipoeiro and 130 meters vertical depth at Chega Tudo.
While the Company has focused recent drilling and exploration on the Chega Tudo and Cipoeiro ore bodies, the 100 percent Jaguar owned Gurupi concession includes 12 additional, identified targets within the region. These additional targets have not been included in any of the Company's resource estimates or feasibility studies related to the Gurupi project. These targets have been identified as high potential by favorable geology, structures, old artisan mine works, soil and channel sampling anomalies and exploration drilling.
A new assessment of the Project's mineral resources inventory is expected during the second quarter 2012.