For what it's worthI thought that it was time for me to add my monthly 2 cents worth.
Firstoff, this market of late has been one of the worst in memory, especially the venture board, with no liquidity and precipitous price drops. ETG has been a top performer when compared to the overall market, and it bloody well should be considering the assays from the first drill hole on CF!
My view is that the risk is quickly leaving this deal, as it's been confrimed that the world's greatest copper orebody extends onto ETG property. If we start hitting on subsequent holes, our market cap should start moving into the hundreds of millions, unless the selloff becomed even more dramatic. Or unless our president continues with his proven inability to create shareholder value.
As for what is really going on behind the scenes, my guess is that GC is on site as he wants to be there when the key cores are being pulled, as I am sure that his level of trust with RF is not high. It would seem that Pinslowski is mopping up all the paper amongst friends as Cannacord continues to spew out paper, and that there will be no promo until the mopping is complete. I mean, why chase it up if there is paper coming out, and if the markets are so dismal? One thing is certain wrt this deal - the liquididty has been phenomenal, even as the stock has drifted aroung, there has always been strong and large bids stacked up like cordwood always sitting there a few cents below market. What we have been seeing here is very patient and sophisticated accumulation going on. Let's just hope that it's not the RF camp that is accumulating, and that it's the Pinslowski GC camp that is nibbling.
My biggest concern for this deal is the fact that RF is calling the shots, and what interest would he have in ETG other than keeping a lid on it while he tries to figure out how to grab the last little piece that he does not own. RF has played GC like a fiddle - he's just too smart and shrewd, and he's been aound so long. Sure hindsight is worth a million dollars, and it's very easy for us to bad mouth GC as we now have confirmation that the Hugo zone extends onto JV land. We have all debated this before with Jackboots firmly opposed and most others praising the deal. My take is it was RF's camp that bought that 3 million share block a little over a year ago, and then sold the deal down and forced GC up against the wall. They then said, while the share price was at 0.5 and looking dismal - maybe we will have a look at CF, even thought we know there is nothing there! GC was all excited that he cut a deal with IVN, but look who's laughing now.
I realize that smartchick, whom I respect very much, posted;
"One great thing about IVN having the right of first refusal is simply this. If another company makes an offer , we automatically have a bidding war if IVN wants the land. Don't have to shop around for another suitor !!"
However, I am fearful that the opposite is true, in that if anyone was interested in Entree, once they found out that IVN is a major shareholder, and has right of first refusal on any other potential deal, they would keep away.. RF is not liked in general mining circles, as he plays too many games.. This will turn potential suitors off IMHO..
This leads to a bigger issue, and that is that it's now high time that GC took the bull by the horns, and let us and the market know he's not just a lame duck Friedland puppet... If he can't do this, he has to go!! Let's face it, GC has not prooven himself as either a promotor or a creator of shareholder value. The 2 runs that this stock took were;
a) a result of the fall of 2003 metal bull run coupled with the Calandra effect
b) a result of RF snookering GC into 80% of CF, whilst IVN taking on a major placement at $1 when the stock was significantly lower.
My point is that GC in no way helped the share price rise during those few times that the market moved. And he should be demoted for his inability to strike a deal with anyone before he announced he had JV'd CF to IVN, thus selling his soul to RF. His inability to strike a deal with a 3rd party at that time, even after he had procurred 100% interest from Mongol gazar, glaringly showed that he was not a worthy president.
Those of us who invested in ETG long ago because we believed that the rich IVN orebodies extend onto our property have yet to be rewarded, even though we have patiently waited for a few years. We have not seen a cent of shareholder value created over the past 1.5 years, yet we are currently delineating what appears to be the motherlode. Again, who is providing us with leadership? Who is creating shareholder value.
A few months ago most of us longs were bewildered with the lack of attention that ETG was receiving even though the drills had moved onto the CF JV lands. An astute poster queried GC on this, and his response was that he would not promote until had results in hand. WELL NOW GC, THE TIME HAS COME. STOP PAYING LIP SERVICE TO YOUR LOYAL AND LONG TIME SHAREHOLDERS, AND SHOW US THAT YOU HAVE WHAT IT TAKES TO BE A LEADER.
If GC can't deliver, we'll end up in purgatory or selling out to IVN for some ridiculously low ratio and/or price. Now is the time to act as IVN is not flush, and they would be hard-pressed to match an all cash offer from another suitor...
Good luck to all longs
JANDD