Timmins Gold Corp T.TMM

It looks like NES has raised capital to cancel the deal.

[caillen]

I don't think it's a gift. That doesn't make sense. The deal is set to go before shareholders in April so it's being fast tracked. NES has no operations and only assets so it's an easy play. However, why would two main shareholders put up $2,000,000 "for operational purposes" so close to a buy out deal with a maturity set to the closing date of the TMM deal? And of note is that the $2M with their current cash balance of $3.6M would allow for cash proceeds in excess of the $5.5M needed which would allow for a termination of the deal. Perhaps they have a better offer in ther works (although there is a last right clause). Perhaps it's a change of heart and perhaps they now feel that the $5.5M termination fee is cheap in comparison to losing control of NES. I don't know. But it's suspicious given that it equates to the termination fee and it leaves control and the funds in the hands of the existing NES shareholders. 

My view of the deal is that it's a great deal for shareholders of TMM although I have yet to figure out why each analyst downgraded the stock while giving thumbs up to the deal. Yes, there is a slight dilution and there's the extra $10M raised but that's nothing really. This deal has the potential to make TMM into a real midcap gold producer.

[pdcon1]

tmm wins either way  if nes cancels deal we get 5 million dollars to put towards calballo  no dilution , could the price of gold have something  to do with a change of heart with the merger. tmm would be cutting their expenses in developing ana paula , should help tmm share price .just speculation should hear on monday.

[caillen]

I agree. By now, I too want the deal cancelled. I can't see any other reason for NES to raise $2M and why exactly $2M from two shareholders unless they really don't want the deal to close. That way, the two that don't want the deal end up paying for the cancellation and all that makes sense. I see something being said this week.

[DEH1]

caillen:  I have asked TMM for their comments about the Nes loan & have received no reply.  How about you too emailing TMM. The 2 Nes Holders of Nes shares are more than just Holders they are "Insiders" having received between the two of them about 15million free Nes shares = 13.5 free TMM shares.   Unless TMM advises to the contrary I believe that Nes Management may

[caillen]

I disagree. This is not a gift. The maturity of the loan would then not be structured to come due at the closing of the TMM deal (or August 31, 2015). It would have been a swap...2M for x number of shares. But that's not how this was structured. It gave $2M for 50,000 shares (50,000 x .$72 = $36,000 plus there are additional 200 shares per month per $100,000 - interest fees).  It