MOSS LAKE GOLD MINES LTD V.MOK

Endgame

[imerc23]

    This is the way the world ends
    This is the way the world ends
    This is the way the world ends
    Not with a bang but a whimper.

Today's news caught me by surprise. All last summer, while MOK's AGM was being postponed, I expected that the delays were because of a pending buyout offer from WDO, or from some other company.  But despite the delays, no offer was presented, and the AGM eventually came and went, with no unusual shareholder resolutions. 

My assessment was that it made more sense for WDO to monetize its MOK investment rather than to buy out MOK's minority shares and try to develop the Moss Lake property on its own. At any rate, I reasoned that if WDO did make an offer for MOK, it would be a generous offer that reflected the way that they wanted the asset to be perceived by the market once it was entirely in their own hands.

Well, I was wrong on every point.  After dragging its feet all last summer & fall, WDO did suddenly make an offer.  Why now, I wonder?  And it ended up being a low-ball offer.  Based on WDO's recent trading range, it seems that MOK is being valued at around $9 million.  That's about $3 per resource ounce (indicated & inferred).  Umm ... let's just say that I was expecting a little better than that.  Why did MOK's independent directors all agree to this ho-hum offer, after waiting for all these years?

Questions, questions.

Well, let's look on the bright side.  At least now a deal is on the table.  Who knows, maybe someone else who's been watching from the sidelines will now decide to make a better offer.  Hello out there !! Goldcorp? Agnico?  Osisko?  Argonaut?  Anybody?  Is there someone out there who feels that a 3 million ounce gold deposit is worth more than $9 million?   Now's your chance to put in a bid!

[phantoms]

I agree, this offer is  too  low .mok went public at 25 if i am correct and the offer is at 18 .makes no sense to me as we now have over 3 millions onces .i don t think wdo have the money to built a mine .wdo has financed mok at 25  so at least the offer should be around 2.80 mok for 1 wdo.i will vote no deal     

[imerc23]

phantoms wrote "wdo has financed mok at 25  so at least the offer should be around 2.80 mok for 1 wdo."  Check again my friend -- WDO's financing of MOK's $2MM note valued MOK at 50 cents per share, not 25 cents (see the News Release of Apr 25, 2011) -- and as you say, the number of gold ounces has greatly increased since then. I suspect that Donovan

[wafertechian]

Management at WDO is very good here.  These cheap lowball offers are everywhere you look in the gold arena and will probably increase with time. Why pay more when MOK's management agrees with WDO? Great deal for WDO, going forward this will be a big winner.  If you are a WDO fan you should feel good about this deal, if you are a MOK shareholder not so much. I've been on both

[phantoms]

the note is convertible at 50 cents.i don t think pollitt would have offer more .remember river gold mines...when pollitt merged river and western quebec mines to form wesdome what happened ....they gave more wesdome shares to western shareholders as they held a lot of stocks in western and was  controlling river   .a very bad deal for river

[londry]

This post has been removed in accordance with Community Policy

[phantoms]

Mr  Londry may i suggest you read 2013 news releases issued by mok .......Mr mannard seems very optimist as last report doubled the resources with potential to add more onces with more drilling.,,,,,,,,,Read Mr Mannard comments and  you will say no deal at this  ratio .    

[silver300]

Londry is a plant. There is no other explanation for his incredibly misleading comments.

[imerc23]

Hey silver300, looking back to our discussion last July, I'm very sorry to admit that you were right and I was wrong ...

[silver300]

imerc23, I hate to be right when being right hurts me and others. Let's also keep in mind that the MOK property will likey be an open pit mine. Cheap. Cheap.Cheap. We need to make a stink about this lowball offer. If WDO goes ahead with this offer at this low price we will need to keep a very close eye on WDO's every move and expose every fault and broadcast them widely, whether

[phantoms]

I don t think wdo can develop mok deposit at 540 millions . I think they will sell the project  after acquiring us resulting a big dilution for us (1 wdo for 3.85 mok)  .Simply say mok shareholders would receive 3.85 less as a new  wdo shareholders.Mok shareholders must know   what wdo will do after the takeover

[silver300]

1) Wesdome management sold us a property at $0.25/share. 2) They used the cash we gave them to GREATLY improve the value of the property as several people on this board have noted. 3) Wesdome management is trying to buy back the property at about $0.195/share (calculated on the day the announcement was made). You just don't do business like that. In my opinion, Wesdome Management

[silver300]

I agree phantoms, for WDO to not pay AT LEAST 25 cents PLUS a premium for the shares that were sold to me under a 25 cent share offering when the asset is far more valuable now than it was then is a black mark against WDO managment. And don't goose the price of WDO to get there!

[londry]

This post has been removed in accordance with Community Policy