Mountain Lake Resources Inc V.MOA

RIC ?

[TheRock07]

Its moving  its share price upwards , while also reporting all of MOA's news releases.

It has a strong  history  as a gold producer in this Province, and needs to restore its growth premium.
Soon, it will have lost its initial 70 % WI in VL thru earn-ins  by  NewCo and MOA.

In retro, was this a big mistake by RIC management ?
Will they try to reclaim VL by making a TO offer for MOA's share , using equity as the currency ?

Is MOA being knee capped at
.80 for this reason  or is this just aggressive profit-taking ?

[JR5]

I agree that a temporary lid has been put on the price of MOA. I was buying on the day that 81 cents was taken out and then the wall was put in place. RIC already has a large chunk of the company so a deal with shares of RIC makes sense. All three companies could be put together and RIC would be the cash driving force to keep drilling. The question is would MOA spin off a couple of properties

[dcully]

Don't mistake Ric as a driving force. They were lead on the Valentine property for 8 - 10 years.... They got off to a good start with a couple of drill programs  when MOA partnered up with them that resulted in the initial 43-101. Then they fell asleep at the switch and nothing happened with the property. I was really pleased when moa management snagged the property back and proceeded

[JR5]

I'd be interested too, even more if they spun off two new companies-one for Little River and the other for Glover. Would expect at least a 50% premium in Ric paper, some cash and a share in the spin offs. Now for some more positive drill results and just maybe they won't be able to hold MOA back!Cheers,JR. 

[TheRock07]

I cannot see RIC doing a pure  TO on MOA.It would not get shareholder aproval to do so , unless the offer were very much at a premium.What I foresee is RIC acquiring our 50 % of VL  for some cash but mostly equity ,while MOA  retains its  other properties with the necessary cash to move them quickly thru the definitive exploration stages.This route means that, thru our RIC

[Cousin_Gert]

Personally I see about a 0% chance of RIC trying to buy back MOA's 50%. This is a major MOA asset and MOA shareholders would have to vote to accept any offer. At this point I would expect MOA's management to say "Go Away; not interested" as whatever they offered would, at this point, be far below the blue sky potential now being presented to the shareholders of MOA. I see MOA

[TheRock07]

Very reasonable  arguments CG.However, companies that continue to drill up a resource over extended periods of  time are valued far less than those that drill out an initial economic resource and  use the resulting cash flows to expand both production and mine life.Further, they are at risk of significant dilution and also risk missing the boat should the POG lose steam over the

[Cousin_Gert]

Yes R7...I also agree that the little guy does well by passing along an economic resource to a bigger fish at the right time, however it has begun to appear to me that this should not be done too soon with the way the geology here is shaping up. For example Valentine East(at km 13) has shown enough data from past drilling; especially when you can see how quickly Leprechaun Pond has