RE:Merger or no merger.....GBU,
- G: Yup, G has "the con" at PRB, since Probe Metals was created when G bought out Probe Mines. At the beginning G has 19.9%, but Dave Palmer has a good relationship with G. If you go to PRB website, it lists G as its parent company (Dave is a clever politician), even though G's ownership has reduced to 14%. No matter, G is still an insider and still has its say.
- But things may change if AEM would allow AZX to merge with PRB. Whatever the conversion we don't know but it would be close to a merger of the two equals, let's say AEM would let AZX go at near PRB Market Cap. But this depends on the scenario (spin off part of AEM?). The main thing is to get a foot hold in PRB (Sean Boyd may be willing not to be too hard on PRB on the negotiation for this foothold) , while the ownership of G is reduced (say to 7%, if we assume 50-50 merger). Also, PRB Chair of the BoD sits on AEM BoD (he's just a go between boy, lol) .
AEM ownership, would drop from 8%(AZX) to 4%PRB after the merger. But, G must be vigilant, or else the control would be snatched from them with other player such as ES, Roosen, AZX United who may decide to support AEM instead. BTW, AEM can offer the 14 claims (with some 0.6MozAuEq, inferred) to PRB to increase % ownership of PRB from 4% to ???% (G: watch out).
- ES: has a long-term view on this, since his current investment in AZX is limited to $2M (he can spend $3M to exercise his wts @ 0.09 for 33.3Mshares). But, a few $M profit is chump change for him. He would want a nice % in a consolidated pie which includes QMX.
- Roosen: had some bad chemistry (court case and all) with G during the negotiation on Canadian Malartic (sold to AEM and YRI).
We'll see how this will unfold, soon enough.
GH
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Goodbadandugly wrote: "I can see that Sean Boyd of EAM would want to consolidate the area by putting AZX with PRB and QMX (this is also the scenario that Kaiser is painting). AZX BoD is controlled by AEM and ES, so EO's vote is a minority vote on this board."
Goldhunter and Currower- you are both assuming that AEM would support a PRB and AZX merger so that they can consolidate the area. But PRB has Goldcorp as a major shareholder (not sure exact percentage but somewhere near 15-20%). Perhaps is it AEM that is not agreeing with the merger (along with EO) whereas ES being a shareholder of both azx and prb would benefit and prefer the merger??
Alexandria has a very, very strategic location with 3.5 km long Cadillac break property, that appears to be full of gold and I can imagine both Goldcorp and Agnic Eagle wanting it.....wouldnt be the first time they competed over a property.....