Curious why all the complainers have this idea that the LME Special Committee and Cynthia are to blame for the deals not being done. (And get over your exaggerated selves because you are not that important that anyone is following you down the overthrow path.) In most transactions it is the buyers that decide whether to spend the money or pay the asking price. If the SC and Cynthia weren’t doing their job and took $2-4 then there would be something for everyone to complain about. They would also be open to being sued for not getting fair value and they would obviously be going against their Financial Advisor’s fairness evaluation or the FA would be sued to for bad advice.
The 10 step M&A process that was posted here was from the Acquirers point of view. Basic steps are They decide what type of company they want to acquire, then look for companies that fit and pick the best ones for enquiries and work it down to the best one. Then make a non binding proposal and do in-depth due diligence and negotiate a deal and Step 7 is the hardest step.
I bring this up as I’ve been asked where we are in the Step process and now where we are compared to Osino. After reading the Osino management circular I think it might be a great answer to the question I have been pondering about Why did LME announce the hiring of USCG and forming the SC. From everything I’ve read in circulars the SC isn’t formed until there is a serious offer on the table to be considered. FA’s are always hired when the deal is almost done so when USCG was announced I thought they were close to signing but they don’t normally announce the hiring so why this time. The Osino circular may point to the reason and that is to put pressure on the player at the table and do their duty of getting the most value for the shareholders.
What Osino charged their FA with was finding more potential acquirers.
“In order to assist with the evaluation of strategic alternatives, Osino retained BMO Capital Markets
and Treadstone Resource Partners (collectively, the “Financial Advisors”). Starting towards the end of 2022 and throughout 2023, the Financial Advisors contacted entities that, based upon their judgment and experience, with input from management, were considered to be logical potential counterparties” “At that time, the Board created the Special Committee”~ “to review and consider any proposals received by the Financial
Advisors.”
I still believe they are at the table but the step between getting an interested acquirer and getting a compelling proposal worth negotiating to a deal can take a year or more. See GBR’s circular and you will see that they signed Confidentiality Agreements with 11 companies interested and received multiple proposals from others that were deemed non-compelling. (And not released to the Stockhouse transparency whiners). GBR signed the first CA with the Kinross on March 12 2018 and extensions on the agreement many times keeping it intact until they eventually announced the buyout on Dec 8 2021 after Kinross's 3rd non-binding proposal.
I don’t hold to the thought that this will be rush through pre June 25 tax hike but I go back to the Easter in person meeting of Cynthia and the SC. What would they need to meet in person about other than the state of negotiations. It is in the works and Cynthia not being in Beardmore is hopefully because she’s too busy working the phones. If she doesn’t show up in pictures soon, now that the areas are getting power washed, then it is probably very close to deal done as that is her happy time on the property walking freshly uncovered formations.