Aurelian Resources Was Stolen By Kinross and Management But Will Not Be Forgotten
The company whose shareholders were better than its management
Message: My little parcel of spelling mistakes to the press
Dear Sir/ Ma'am,
The recent Aurelian/Kinross deal has some points which I feel have not been adequately expressed by the Media. There seems to be a certain amount of complacency in the articles that have been published to date, namely, they all seem to be basic re-hashes of Auralian/Kinross press releases. I would like to present you with a few points which might bear further investigation, and account for the extreme anger being expressed by retail shareholders of Aurelian.
One: I would like to point out that the OSC has decided te reveiw Aurelians' disclosure record in accordance with OSC staff notice 51-703. This would appear to be quite an in depth reveiw possibly going back 2 years.
Two: The mining law in Ecuador was very inadequate and a mining Mandate was set up on 18 April 08 to produce a new mining law which was purportedly supposed to be fair to the Ecuadorian people, the environment, the companies involved, and provide fair taxes to the government. Prior to the Mandate analysts placed Aurelians' sell value in the $20-$30 range. Considered low by many. This Mandate negatively affected Aurelians' share price.
Three: There has been some question about insider trading by senior Aurelian management and the BOD prior to April
Four: A draft copy of the new mining law, which is due out shortly, has apparently been read by the CEO's of the various companies currently active in Ecuador, and has been declared workable for all parties.
Five: There should be questions about what sort of compensation packages will be meted out to ARU CEO and the BOD.
SIX: A bought deal by Kinross of 15,000,000 ARU shares at $4.75 supposedly providing ARU with working capital which, incidentally ARU does not need at the moment. The end result is ARU shares are diluted by 15M and Kinross has a 15M advantage in share accumulation.
Seven: If the deal does not go through, Kinross walks away with a $42m break-up fee and 15m ARU shares @ $71m - $42m =$29m or $1.93 per share. Pretty good deal either way.
Eight: The preparation for a deal like this must take some time, it is not the back of a napkin type of deal. How come nothing was mentioned at the recent AGM? Disclosure to retail shareholders has been practically non-existent for 2008, after all we are part owners and expect the BOD to carry out their duty to us, not just the hired help.
Nine: ARU has not disclosed the results of the latest drill holes that took place before the work stoppage in April. Most are infill but I am sure there were others. There was also an Aerotem carried out, whether it was completed or not we don't know. There may have been partial results from that.
Ten: Much is made of the 13.7m oz at Fruta Del Norte, arguably one of the richest finds in the last 15-20 years, hardly anything is mentioned of the 22m oz of silver and I don't believe any mention has been made of the copper discovered. This lack of proper reporting tends to downgrade the actual size of this discovery, also, the high cut off grade takes away its true worth.
Eleven: It should be noted that maps, targets, and other data have been removed from the Aurelian website. I wonder why?
Twelve: Part of the offer consists of warrants cashable in 5 years, even then they probably won't be in the money.
In our slack and convoluted legal system this may all be considered above board. I would suggest however that perception sometimes means everything, and this deal will quite likely not be perceived by International investors as anything but doubtful.
Junior mining stocks in Canada have taken a considerable fall since the advent of Bre-ex. Now, just when the Juniors are recovering, people start wondering if anything has changed. Canadian Exchanges must surely be concerned about their image in the world of trading.
Kinross trades on the NYSE & TSX
Aurelian trades on TSX and the Frankfurt exchange.
To those concerned, please do your own Due Diligence.
Sincerely,xxxxx
For further and more comprehensive info please try: agoracom.com the ARU forum and incakolanews.blogspot.com
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