The only thing of moderate value that Taseko brings to the table is 1 operational mine in the process of ramping up.
Taseko Mines and HDI own approximately 27% of Curis Resources.
I believe Red Kite is first in line for assets if Curis Resrouces were to run out of cash and default.
Clearly, it would be in the best interest of Taseko and HDI to step up to the plate in a financing that would provide funding to see Curis through the next 2 or 3 months. Even if it meant some additional dilution it would be better than the deal Curis shareholders are being asked to approve now.
Here are the pivotal events:
Eminent Domain: 9/22 hearing on Motion to Change Venue and Motion to Dismiss Eminent Domain. If the judge dismisses the eminent domain and grants the motion to change venue, that leaves the only remaining issue as the prior non-conforming use issue which hopefully would be decided in another venue.
ADEQ Temporary APP appeal. The Administrative Law Judge has until the the 28th to make her recommendation to the Water Board. I am not 100% certain, but the judge's recommendation may be entered in the public record on the OAH portal. I have looked at other permits with appeals, and the judge's recommendation has been on the public record which is then followed by the Board's final decision 20 to 30 days later. It is possible that the judge may take a little more time but the OAH has indicated that the judge's really try to get their recommendations/rulingss complete pretty close to the 20 day requirement.
UIC: In mid-July the EPA indicated to me that 90 days was a reasonable expectation for the UIC decision to be issued. Of course, the EPA can and has delayed their decision numerous times but it was indicated to me that the delays had been substantially due to delays in the Rule 106 process but they were indeed at the tail end of the process. In my opinion, another substantial delay is unlikely.
Clearly these pivotal events have the potential to substantially impact the share price; I believe that they will be positive.
Why am I opposed to this deal?
C
If I were an investor holding 27% of a company that was merely 2 or 3 months from 3 major pivotal events that I expected to be positive and that same company was at risk of running out of cash and loosing its primary asset to a creditor (Red Kite), I would not hesitate to provide additional funding to ensure that the project remained on track.
In this case, Taseko Mines and HDI, are (in my opinion), taking advantage of the present situation and trying to push through a deal to their benefit before the share price can rise on positive news. In my opinion, Taseko Mines and HDI could easily provide funding (even it was dilutive) but instead they are taking advantage of Curis' position and buying the company at a bargain basement price. Would Taseko and HDI really let their 27% interest become worthless as Red Kite walks away with a stellar project?
My second contention is that Curis Resources has already filed a claim of 403 Million for the value of the private land. How can it now be claimed that a fair value for Curis in this transaciton is so pitiful.
Not only will I vote my considerable shares against this deal but I have withdrawn my previous votes on the upcoming meeting in Septmeber. The only item I supported was the auditor's.