I suspect that New Gold knows that they low balled the share price at $3.83 for Rainy River. If they get it, they’re lucky.
However, if a Company X comes along and offers $4.25, then if New Gold wants Rainy River, New Gold will have an option to match the price.
Company X could come back with a final offer of $4.50, which means that if New Gold were going to match again, then New Gold’s share price will plunge.
Really, what is Rainy River really worth? Forget what the Rainy River management says, we already know what they think the value is!! And they sure didn’t have the shareholders in mind!!
With respect to the Bayfield Ventures Rainy River property, this company doesn’t have a PEA, so how could anybody evaluate the gold and silver reserves, and get a sense of what the Burns and B Block are worth. I suspect however, that Mr. Petitt may be more shareholders friendlier than Mr. Threlkeld of Rainy River, and will therefore get the most for his shareholders.
I suggest that everybody should read Mr. Threlkeld’s ‘resume’ on the Rainy River Resources website. Considering his background, I guess that I should have suspected him.
From 1996 to 2004, Mr. Threlkeld was employed by Barrick Gold.
New Gold’s Executive Chairman is Randall Oliphant.
From 1999 to 2003, he was President and CEO of Barrick Gold.
These 2 guys obviously worked together and have kept in touch over the years. Nothing wrong with that!! But former Barrick employees for this New Gold/ Rainy River deal points out why everybody should be doing their DD.
But a deal like this today (Rainy River vs New Gold) is a sham!! For those who have more clout than I do, go after them, especially the MEDIA (Threlkeld vs Oliphant).