Balmoral Resources Ltd BALMF

even a dumby like

[montybissett]

me can figure out a bit of this story. By doing a bit of research. So DW agreed to sell to KL for .37. McGoo thankfully made a huge mess with his 2 deals. Especially on the timing. Hopefully it will rival DW Fenelon sale someday. DW signed on to a deal that would have actually done us more harm than WM deal a few years ago. At least with WM we have a chance to benefit off Fen. So McGoo lights up the neighborhood with huge investments in DGC and much less in WM and huge help to Bar and buys Bar for 65 million. Bar deal comes crashing down with blunder on DGC. Then falls more like everyone else during latest meltdown. I imagine in the last couple months Bar deal is the least of his worries. 

At the next directors meeting he can call the meeting to order and say we are up a nickel on our WM investment. That should be enough to keep his job.

The whole thing is a orchestrated boon doggle, but thankfully WM and KL dropped into the neighborhood as they saved us from ourselves. Ourselves being DW. The window for making serious money slammed shut and got slightly opened again. We have gone from threading the needle in a Cat 5 Odile to a 75 mile an hour stiff breeze.  

I was hoping for an offer from KL to get the price going and would have been happy with  a royalty deal with them as they have a mill. We did get a offer from KL to steal the company. Upside opportunity would not have been as good as WM but a stable investment with a div. So I thought

With todays price of gold in Ca they were basically givng us a 4.75% royalty on 600,000 proven, a big fat 0 on the other few million sitting in the ground. Plus another big fat 0 for a billion of high grade EV nickel. DW not even going to keep the nickel. That was one of the reasons I liked KL was we might be able to keep the nickel.  I imagine with 10's of millions spent on nickel that costs us 10s of millions for drilling it, instead of Mart in 2015 it was valued at 100.00 in KL deal . 4.75% of 1.4 B Ca = 67 million. At todays price it would have taken KL 38 minutes to get their money back with much better shallow grade for the future and a whole lot of high grade deeper in the Detour trend.     

You cant make this mess up. If nothing else it has been interesting. It is easy to be a back s driver. It is also easy to make the wrong move. When you get the big bucks you live or die with your decisions. Lately McGoo has been glued to the dryer and DW has stumbled into a much better deal than the one he signed onto with KL. Maybe our luck is changing thru another screw ups. Hopefully as of today 5 million for Fen and 70 million for Bar with 65 million in bank this is a turning point. Hopefully in right direction. Lots of twists and turns yet to come. Hopefully coming from a bit in the ground. As the Babe ES said more upside possibility in WM than KL. Remember the word POSSIBILITY.

.   

Thanks Johnny Snep and Honalulu. 

glta

[goldhunter11]

monty, Excellent analysis! Yup, I was reading starting from page 26 of the full Circular. Interesting background of the long negotiation, back-and-forth with two bidders. Then  the intermediate producer (who else but KL) appeared in the scene. But may be it was part of the overall scheme to get BAR, one way or the other. All along, it was assumed that KL is "using" WM as a proxy to

[rocdic]

This post has been removed in accordance with Community Policy

[Rustyred24]

Ya and guess who there going have to come and see wallbridge lol ? Go wallly

[westcoast2019]

I agree also that the discount will likely disappear soon. About the only thing that is likely to stop the deal now would be another suitor other than KL offering more. The 10% arbitrage looks almost like free money I just wish I could afford to risk more but I'm already loaded up.