A few thoughts - post NRSo I have reread the news release a couple of times and have a few thoughts to ponder:
- first and foremost, if we were "halted at the request of the company - pending news", why are we still halted after the intended deal was announced??
- how can American Iron be an "iron ore focused exploration and development company" if they have no current projects and if they have no current projects, how are they worth 40% of the current company??
- "IF" the current projects are all in good status like the company says - insofar as licensing, vendor agreements, access, regulatory compliance, etc. are concerned - why has the company found it necessary to "spend the last year assessing a number of project opportunities" instead of bringing the existing projects back on line. I find it difficult to understand how acquiring an iron ore company that does not even own (at the time of announcement) any actual projects is an appreciably better investment of time, money and resources than a collection of highly prospective gold and silver projects that have had nothing but success in the exploration work completed to date.
- additionally "IF" the current Indonesian projects are all still in good standing why does Reliance even need American Iron to have a "qualifying asset", this should not be a prerequisite for an acquisition??
- "IF" the iron ore projects being availed to us, as a result of the American Iron acquisition, are as good as I am told to expect them to be, then the concept of bringing them into the fold and into production to fund the ongoing operation of the company makes a fair bit of sense - BUT why acquire a company to do that, if the company doesn't own the projects. In that scenario the company adds little value, some of the people may very well.
- "IF" American Iron is bringing with it the type of value being declared AND it has been in the works WHY was this not diligently pursued by both parties American Iron and Reliance based on a timeline that would have alllowed for the retention of the TSX main board listing? Clearly a production capable mining operation, with a secondary 43-101 supported gold resource would have been better off retaining that listing.
- "IF" American Iron is bringing with it a substantive managerial benefit, why are those new persons not being identified up front as definitive assets being folded in with the acquisition? And furthermore, why are one of them not the new board member, as opposed to an additional Australian based member?
- WHY are the quotes about the new additon being atributed to Gary Lewis who is a "non-executive Chairman", should we not now be hearing from George Young as the CEO and President of the company? He as held these titles now for approximately 2 months and should be the voice of the company by now.
- How did it possibly take a year to negotiate the LOI (which essentially is what was just announced) for the acquisition of a company with no actual projects?
Unfortunately I do not yet have the answers to the above questions, but my intent is to acquire those answers and to share with the group upon my receipt of them. I sincerely hope that this transaction works out, but there is a lot more that is required in the way of information and definition of it, before it can be ascertained whether this is a success.
Salut,
Leigh McBain