The axes are outby some on here and certainly the CEO AR board for Richard bring out the guilutene "off with his head"
im going to re-interate what i said in an earlier post
Young was stuck between a rock and a hard place knowing that the only way forward was re-financing he stated that there were 3 lenders ( were there or was it a negotiating technique) with offers by the looks of it there was still no great deal to be had, its tough to negotiate anything from a position of weakness especialy with deadlines looming for extentions by our present lender.(possibly pushing AR for more shares to stay compliant.
I think any deal would have had gotten negative reaction from shareholders and certainly from the market SP plummeting again.
I think Young aproached Alamos only at the same time and said we would be willing to listen to a buy out offer knowing fool well that they may come with something rediculously low ( it didnt matter to him a offer is a offer)
and Bam yes they did (actually the lower the better)
Now he could have started by calling every Tier 1 and Mid Tier producer, I am shure being in the industry for as long as he has been his rollodex of contacts is quite extensive.
But again your calling all these guys from a position of weakness the call would go something like:
Hey Ed we are having some trouble getting nessecary financing to get us over the line over here at Magino and our lenders are breathing down our necks and oh ya that little hickup a week or so ago with SP in the sewer because of our short tearm AISC..... Make us a really good offer like $1+ a share and we will consider selling to you.
ya bad Idea
Now with the way this has played out so far this deal has been covered by every mining and finacial news outlett, Blog, forum,etc. the amount of publicity over the past 8+ hours with the general sentiment being Alamos is made the deal of the century buying Argonaught for the price they did.
just look at market reaction to the anouncement they wer up $1.50 out of the gate. think someone said the purchasing companys shares usualy drop after a merger announcement..... well not here because the deal is so sweet!
Now if anyone in their right mind thinks that every Tier 1 and Mid Tier Gold company looking to expand their portfolio arent paying attention to this as well .....you need to give your head a shake
My bet is that there was activity in lots of board rooms today and sending their accountants into their respective caves to start crunching numbers to see what sort of offers above Alamos low ball that could be made to snatch AR up from under them.
I see this playing out over the next 2-3 weeks .
Young may even stirr the pot further by releasing drill results, if he does that you know that getting multiple offers after the low ball, was the plan all along!!!!!
everyone needs to take a beat and see what happens over the next 2-3 weeks
and to think that AR is too small a fish for a Berrick or Newmont you are wrong someone did the math at $1 buyout thats payd off in 2.5 years with 20 yr minelife making over 8 bill 800% return on investment