I had strongly argued that RML would not be able to steal away GRZ on both attempts. I will now argue that RML/EDV are preparing a deal for KRY. It is not a deal I support but still interesting nonetheless. The main focus is the paying-down of the KRY bondholders and swapping RML paper for KRY management's support in order to garner the permit. A TSX listing for RML would therefore make some sense to increase share liquidity for a combined entity. Something very interesting is taking place right below our noses. Endeavour (EDV-T) advises RML, owns equity in RML and has loaned money to RML. In the failed hostile bid for GRZ (essentially to grab GRZ's cash for RML paper) it was EDV that dropped the ball by not breaking the tie with GRZ and by using GRZ's confidential information. It seems odd to me that the sum of money in GRZ they were after amounts to $ 100 mill. in cash, that late January '09 when it appeared as though RML was not going to succeed in stealing GRZ that EDV puts a $ 100 mill. equity offering together?

Did EDV attempt to go-after GRZ $ 100 mill and then when it looked as though it wasn't going to happen, that they raised a $ 100 mill and now will use the funds to pay-off the KRY bondholders when RML/KRy merge? reading the EDV equity offering certainly makes one think this is the case and might explain why Canaccord are buyers of KRY stock? Something is up!

Listed below is some of the wording of the offering I grabbed and have pasted:

("Endeavour" or the "Corporation") announced today that that it has entered into an underwriting agreement with a syndicate of underwriters co-led by GMP Securities L.P. and Canaccord Capital Corporation (the "Underwriters") to sell 56,500,000 Units (the "Units") at a price of $1.77 per Unit to raise gross proceeds of $100,005,000 pursuant to a short form prospectus (the "Offering").

The Corporation intends to use the net proceeds from the Offering for investments in the natural resource sector, which will predominantly include investments in equity, warrants and/or quasi-equity or debt securities in junior and intermediate natural resource companies and possibly directly into the acquisition of mining projects or royalties.

Currently, the Corporation believes there are several attractive investment opportunities in gold and gold-related mining projects and companies.

The Corporation and Fiore's longer term objectives include pursuing a larger-scale investment program focused on these gold-related opportunities, and as part of this objective it may explore the opportunity to source third-party capital in a corporate structure yet to be determined, which may include a limited partnership fund or any other mechanism, in which a portion of these proceeds may be invested by the Corporation.

Cheers

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