Elgin Mining Inc ELGMF

RE: What a disaster

[the_ocotillo]

I think the subject title "what a disaster" would have been more appropriate at the time the reverse merger was approved by shareholders. The margins at the Bjorkdal mine are fine with me, if new management can improve on them, all the better. What is wrong now is that you have that single 45K ounce mine trying to support a much bigger company, developing 3 brownfield properties instead of just 1. The only way this merger can be redeemed is by new Bjorkdal management proving themselves more capable than old Bjorkdal management by expanding the Bjorkdal operation. I am somehwhat encouraged by their rhetoric but that is all we have to go on right now. The bright side of the depressed share price is that management probably will not be able to dilute shareholders to fund expansion.

I still am confused as to why Resolute brought this merger to Gold Ore shareholders and why Gold Ore shareholders thought it a good idea. If Resolute didn't like the mergers that Gold Ore management was bringing forth they could have simply rejected them. Why come up with their own ill advised merger and blow Gold Ore up instead? (And I am suspicious as to why Elgins share price was inflated just before the reverse merger announcement with Gold Ore). 

But it's all water under the bridge, I am willing to wait and see if new management is able to expand Bjorkdal in a pretty short order. (Besides, what's the point of selling at this price anyway?)