RE:RE:RE:RE:RE:RE:RE:RE:RE:Nevsun Dismisses Baseless CriticismsSo in essence you are backing the Chinese Interests - or at the very least favoring them - both Jim Bao, whoever they are, and XGC. I'm a bit confused as why you think that their alternative is better in the longggggggggg run... As I understand it, XGC and Ji Bao are trying to increase their ownership of RMC on the cheap. Their proposal has been turned down by RMC management. They have no expertise in building or running a mine, that I know of. As part of the covenants with Freeport, RMC needs to fund exploration of the South portion of $20 million. There is further funding requirements for exploration, mining permits, etc etc. Present management does not have the funds or expertise to build or run the mine. Covenants with Freeport require additonal monies to be paid to them in additon to the one I mentioned, I think its around $130 to $150 million. RMC does not have a mining permit. RMC is on its own now to fund all exploration and additional costs on the North side, and responsible for additional expenditures on the South Side in accordance with the percentage of ownership and budgets that will be set out by the operator, Freeport. RMC is on its own now that they have lost Freeport guidance and expertise, financial strength on the North Side.
There's funding needs of approximately $300 - 400 million in addition to all that, unless you really believe in the Preliminary costs outlined in the PEA.
You seem to have a real crystal ball, which is superior to all of us, in determining where commodity markets are going. It was only a few months ago, that commodity companies were in dire strait, unable to get loans or funding, as margins are getting squeezed, selling prices declining and costs rising, due to climate and environment concerns. Heck even Freeport is selling properties to get funds.
Economic growth outlook for the global economy has been downgraded again, and expected to be less than 2.5% worldide. Maybe your crystal ball, says otherwise, but from where I'm standing, there could be rockier times ahead than we expect.
Thus, given all the above, you would chose to a) support a standalone, operation, without an experienced major mining partner, b) face difficulties in raising funds, loans; c) support unkonwn entities such as Jim Bao, and XGC and their confessed self-interests d) hire additional personnel, and people to build and run the mine, e) having the risk of not having the financial strength to be sheltered from commodity market turbulence f) support continued stock dilution in a deflationary world economic environment g) prepared for a long wait for the stock to reach $9 (cdn) again
I was hoping to get to the $12 to $15 level within the next little while. How is that possible now? After all this, you actually convinced to say YES to Nevsun's offer...they have the funds on hand...$300 million and growing....they have expertise in building and running a mine...yes there are risks, but the acquistion of RMC would aid in diversyfing....the stock is trading at bargain prices.....and I think all of us at RMC might get to higher stock prices..sooner with anchored by a strong financially sound company and good Canadian management....you know what they say about a bird in the hand....get the digipic!
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