Aurelian Resources Was Stolen By Kinross and Management But Will Not Be Forgotten

The company whose shareholders were better than its management

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Message: Re: ATTN: PLEASE POST ON BILL CARA'S DISCOURSE TODAY!!!
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Sep 13, 2008 10:24AM

Re: ATTN: PLEASE POST ON BILL CARA'S DISCOURSE TODAY!!!

posted on Sep 13, 2008 10:36AM

thanks, i got it posted now. i was originally looking at the sept 13 section, and there were no responses there. this is what i wrote (as leadhead1)



Clearly the Aurelian buyout was not in the best interests of ARU shareholders. Kinross CEO Tye Burt is a businessman, and buying ARU on the cheap is what a businessman is supposed to do. Patrick Anderson is a different story. His actions were something less than those of an honest man.

The reason ARU has a Shareholders Rights Plan is to prevent any predators from buying the company at a low valuation, whether it is caused by political risk, a bear market, or any other factors. ARU had the means to defend itself, and instead under the "leadership" of Patrick Anderson, embraced a stink bid.

When major gold companies cannot replace their reserves, there is no reason to sell an enormous high-grade gold deposit for $60/oz, when other recent transactions have gone for much more than that.

Next month the Mining Mandate will end, and ARU will be back at work. Ecuador is about to pass a new Constitution and a mining law to resolve the political uncertainty. Instead of waiting a couple of months, Patrick Anderson sells the company at the worst possible time, in the middle of a steep market correction.

There is no law against a CEO being stupid, and there is no law against him being a coward. But I would like to hear from the institutional investors. What did Kinross tell them? How did Kinross convince institutional investors to sell this company for next to nothing?

I would like to see the OSC review the trading of ARU and KGC prior to the offer to see how the valuations of those stocks were determined. I'd also like to know why insiders were dumping shares before the news of the buyout became public. I'd like to know why the officers of ARU issued 2.3 million stock options to themselves. Was this a reward for a job well done?

Now that it clear that the game is rigged, this episode will certainly discourage me from holding any junior mining shares in the expectation of a buyout. Now the directors of Aurelian have taken their loot and scattered, only to turn up on the boards of other mining companies, and the con game will begin anew.

As far as investing in exploration companies, why go through all of the storms when you know there is no pot of gold waiting at the end of the rainbow?

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