Alpha Minerals Inc ESOFD

Operator

[patientriskyinvestor]

Yes it does matter who is operator.  They control where you drill, people you hire to drill, data room, when you need to release drill results and how the program proceeds.  YES the costs are shared, usually on a reimbursement basis, ie operator pays and non-operating partner reimburses.  BUT, each jv partner has varying rights depending on the exact wording of the jv agreement which I have never seen.  No two jv agreements are exactly the same.  That is why when I asked Ross McElroh why they had decided to wrap up the last winter program when they did, he said "it was still -15 up there and the ice was thick".  He said he wanted to continue to drill but "AMW wanted to stop at the end of the agreed number of drill holes".  I never confirmed if this was the case with a comment from AMW.  BUT, it is also VERY important to compile drill results at some time and get assays so that the data can be analyzed, models developed and updated and drilling concentrated on the most likely areas so that precious cash is not wasted drilling futile holes, or in areas that may not warrant drilling at this particular juncture.  So clearly this JV agreement like most jv's has limits on spending and drilling programs.  As always it is in the details.  BUT any major purchasing a 50% interest does NOT want to be in the passenger seat.  So once this summer drill program winds up, AMW is the more likely of the 2 as a takeover candidate for the next 2 years.  So be patient, if Dev and FCU want to consolidate, they need to do so at a "fair" price and on fair terms.  Time is on OUR side.  I do own FCU, but probably 85% AMW, 15% FCU b/c I trust AMW managment AND I think that they are underpriced relative to FCU.