GREY:AVGCF - Post by User
Comment by
December3on Aug 18, 2012 12:17am
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Post# 20232220
RE: EDV / AVR Update
RE: EDV / AVR Update >>>>Investors in AVR have got to come to grips with the fact that AVR mngt realized the desperate situation they were in and they have no other choices. There will be no competing bids for this risky asset purchase. As noted before, EDV is rescuing AVR shareholders in the hope that they can grab a cheap asset with offsetting risks associated.<<<<
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This should be no surprise to those with some history with Forbes & Manhattan companies. F&M group use to run Central Sun Mining which was building the la Libertad Mine when they ran out of cash at the end of 2008 and had to sell the company at a fire sale. Now that mine is on track to produce 150,000 opy in 2014 and has been spinning off $106MM of cash per year.
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F&M appears to have done the same thing with CRK earlier this year: ran the company until they could no longer raise any more cash to fund their "development" work and then sell a 75% stake in the company to a Private Fund Group.
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Nothing new here with the sale of Avion - just the F&M boys doing the same thing, rinse & repeat! So sit back, relax and watch real miners develop the good assets AVR has. If you can see past the frustration and indignation... these assets will add handsomely to the EDV portfolio. Buy when the whining is the highest.....