EDM Resources Inc V.EDM

Merger proposal

[15Stanmore]

So our focused 14 million share ($0.72 per share) SZM with its valuable ready to go project is going to merge with 116 million share ($0.11) FNC where the insiders are awarding themselves million of options to further dilute the company. And this is good news?

SZM shareholders need to challenge the existing Board and Management team that if this is the best you can come up with on behalf of your shareholders, you do not deserve to continue in your fiduciary roles, IMHO.

What a waste of an opportunity, and a concrete manifistation of corporate governance incompetence.

[stopedout]

FNC actually has 159 million share outstanding so it's even worse. SZM shareholders will own 33.7% of the merged co so that is the same as doing a 27.5 million share financing. Assume we could do that financing 60c it would raise $16.5 million. On the plus side, if FNC could sell its Champion Iron at the current level of about $5/sh we get about $25 million for the same dilution. Not sure

[Hopeful123]

I am not a racist but to give that brown fellow control of this company will not be a smart thing..Look at KRN as a good example..These guys are not good at managing companies in mining in North Americs..Also I listen to the Fancamp presentation and the delivery was terrible..For the benefit of shareholders I hope he succeeds but I am not convinced.

[Bwrbhk]

This deal combined with an offtake agreement provides more than enough money required to place the mine into production and is a lot less dilutive than doing a equity issue with warrant (assuming that they were able to do an equity issue).  Instead of making racist comments and moaning about past deals you should be looking at the numbers.  The combined company will have about $25