Alpha Minerals Inc ESOFD

Operator

[patientriskyinvestor]

Yes it does matter who is operator.  They control where you drill, people you hire to drill, data room, when you need to release drill results and how the program proceeds.  YES the costs are shared, usually on a reimbursement basis, ie operator pays and non-operating partner reimburses.  BUT, each jv partner has varying rights depending on the exact wording of the jv agreement which I have never seen.  No two jv agreements are exactly the same.  That is why when I asked Ross McElroh why they had decided to wrap up the last winter program when they did, he said "it was still -15 up there and the ice was thick".  He said he wanted to continue to drill but "AMW wanted to stop at the end of the agreed number of drill holes".  I never confirmed if this was the case with a comment from AMW.  BUT, it is also VERY important to compile drill results at some time and get assays so that the data can be analyzed, models developed and updated and drilling concentrated on the most likely areas so that precious cash is not wasted drilling futile holes, or in areas that may not warrant drilling at this particular juncture.  So clearly this JV agreement like most jv's has limits on spending and drilling programs.  As always it is in the details.  BUT any major purchasing a 50% interest does NOT want to be in the passenger seat.  So once this summer drill program winds up, AMW is the more likely of the 2 as a takeover candidate for the next 2 years.  So be patient, if Dev and FCU want to consolidate, they need to do so at a "fair" price and on fair terms.  Time is on OUR side.  I do own FCU, but probably 85% AMW, 15% FCU b/c I trust AMW managment AND I think that they are underpriced relative to FCU.

[bridgetonowhere]

Funny how cost of drilling and preserving precious capital plays into decision making.  And where does the capital to operate come from?  It comes from financings which are a function of share price.  So why not merge with FCU, save money on planning and admistration, raise operating capital more cheaply with less dilution to shareholders, and drill the project out more quickly

[BuyNNSellN]

Maybe cause Amw rocks

[losecash]

What would the purpose be bridge. Dev has already hinted strongly that it would be sold. We would not save money or drill anything anymore. The project would be gone. That's why the merger is unlikely as it is. AMW shareholders would like to see more drilling not a quick sale.  AMW is not doing their best to delay the project as they are making sure their shareholders get the right deal.&

[bridgetonowhere]

@losecash - I have no reason not to believe that patientriskyinvestor spoke to McElroy personally and was told by him that AMW chose not to extend the winter 2012 program.  It's unfortunate because the winter program had a drilling success rate of over 80% and an extention would almost surely have proved up some additional pounds and the projects value.  As a shareholder I'd like

[losecash]

I dont disagree with that. I have stated several times that both companies are cashed up lets get 10 rigs up there now.

[Horta]

It is hard to tell what is going on right now because we don't have all the information.  Is AMW stalling the merger to keep their jobs?  Is FCU pushing the merger just to sell 100% PLS early?  Are they working together to fend off a possible takeover of either AMW or FCU?  I don't know but in the end I hope they drill as long as possible so that they can prove up the

[Tarquin4]

I believe if a major offers 10.00 a share for AMW it will be accepted, maybe even 8.50 would do it. Ants-in-his-pants Dev will be left sucking wind

[$tarbuxxonPender]

Hey Bridge, how about spring was coming and the ice was melting and that ended the winter drill program. Been drinking too much FCU koolaid. Its BS that FCU guys are superior operators. Sour grapes because they have to hand over in the new year

[bridgetonowhere]

@$tarbuxxonPender - Go ahead and call riskypatientinvestor a liar then, but I have no reason to believe he isn't posting truthfully.  If you have evidence that contradicts the information riskypatientinvestor's received from McElroy than lets hear it.  I'm in this to make money, not make friends.