Keep drilling, prove 200 million lbs, get $7/share or class action If Canacord says there may be 200 million pounds then I feel the company has a fiduciary responsibility to continue drilling, prove at least that amount and get the best value possible.
If FCU acquires AMW and then sells before proving as much as possible, then this may be construed as a breach of trust.
IF PLS (a shallow, high grade, low cost deposit) has 200 million pounds, selling it for $10/share earns 2 billion, divided by 2 (companies) = 1 billion each.
FCU, with 150 million shares then earns $6.66/share. 1 billion divided by 150 million shares = $6.66/share. Make it an even $7 and they have a deal, but if they keep drilling and prove more, then the price goes up--2014 will see a uranium shortage.
Really, I can't see why the company would sell now that they are proving more and more resource. The deposit was just discovered to run for at least 1.2km.
Selling now makes me think that a sweetheart backroom deal was made that makes one person rich at the expense of shareholders.
I already checked, a lawsuit could stall any takeover until AMW takes over as operator.
I sure don't want a lawsuit but if either company stalls drilling or intentionally drills in the wrong place (as a backroom deal - to skew results so a major will not have to pay more), many people will be very "unpleased."
The best thing is to wait 1 or 2 years until uranium prices go back up to $80/lb. A shortage is expected next year so it won't be long. A war in the middle east is going to drive up oil prces and make uranium even more attractive.
Hey Dev and Ainsworth, do you guys get it?
PS. Since you won't return my calls, read the definition of fiduciary. I interpret it as really hard to determine in court and something that can take a really long time to settle... get my meaning.
Fiduciary An individual in whom another has placed the utmost trust and confidence to manage and protect property or money. The relationship wherein one person has an obligation to act for another's benefit.