Abitibi Royalties Inc V.RZZ

Dear Mr. Mullen

[Malpeque2]

Get the rocks out of your head.    We are trading at a valuation of about $60M  Can.

We hold shares in Abitibi Mining worth about $90M  Can.    using a valuation of about $16 per share.

I have followed you and GZZ/RZZ for about 4-5 years now.    You have done ZERO to work to reduce or eliminate the discount that GZZ trades at relative to RZZ.   Yet you are an officer/director of both companies and GZZ is supposed to be the "control"  shareholder of RZZ.  

Even RZZ thinks it shares are undervalued, and uses cash to buyback stock.  GZZ would then  be a discount on a discount as we trade about 33%% below NAV based on RZZ alone,  giving NO VALUE to the other projects and equity positions we own around the gold industry.

IMO there ought to be a way to structure a transaction that is relatively tax free to reduce or eliminate the discount between GZZ/RZZ.    

Certainly we could use available cash and the sale of some RZZ shares,  on the margin,  to buyback stock in GZZ in an issuer bid.    YOu have FAILED  Corporate finance 101 to have not proposed doing this over the past 4 years while the discount has persisted.

You could just make a distribution of RZZ stock to GZZ shareholders,   and then we can all go on our merry way without you and the GZZ corporate "oppontunities" you outlined just the other day in your company update,   although GZZ would remain as a STUB or SpinCo public opportunity for those shareholders who wish to continue to be stuck with the G&A costs of keeping all your various public SpinCo's in business.   This would be ALL or mostly TAX FREE to your long suffering shareholders.

Finally,  a stock for stock merger of the two companies,  with or without a SpinCo could be done as you and a few others effectively are control persons of the two companies.  THis would also be  all or mostly TAX FREE to your stockholders.

What irks me the most in all of this is that the BOD of GZZ and RZZ pander to your foolishness in not moving to implement  any one of these over a multi year opportunity.
Someone involved in this combined company GZZ/RZZ BOD or management should have enough business sense and BALLS to stand up and propose the OBVIOUS.   

Total failure of good corporate governance on behalf ot the GZZ stockholders.  

Merry Christmas to all of you in Candyland