Having done some general DD and also having got some well-needed sleep, I have the following to add to my posts re: yesterday’s announcement.

Positives

First.

From a FIAT point of view, this partnership? seems very fair when you consider just the FIAT monies involved, despite the initial drop in ECU share price.

Second.

From an exposure point of view, this merger seems to be a huge positive/negative, depending on who doing the analysis, for ECU, especially with exposure to large hedge funds (one key to larger trading volume).

Third.

Having large, economically mineable ore bodies, in several locations, complete with qualified personnel, seems like a real benefitfor both.

Fourth.

Having access to a pool of ready available FIAT, seems like a no-lose position for ECU, providing Velardena gets at least some high-priority exposure/consideration.

Fifth.

Present limited cash-flow from ECU operations, will definitely assist AUM “burn-rate”.

Sixth.

Reduced pool of available shares will definitely benefit “Newco”.

Seventh.

Many other obvious benefits, but not significant to dwell on imo.

Negatives (This is where I still have severe misgivings going forward).

First.

The expediency and timing of this news, certainly benefits ECU management, and herein lies my biggest concern.

With the performance of the shares over the last four and a half years; a very coincidental time-frame maybe? and especially over the last six months, this news definitely deflects any criticism that could or would have been made at the upcoming GM of ECU.

For ordinary shareholders, company politics stay relatively hidden, but unfortunately, they have a tendency to create unbridgeable chasms within the company (I have first-hand experience and it can be an incurable cancer).

Second

For some of the larger holders of ECU shares, this definitely reduces their capacity for criticism within “Newco”.

Thirdly.

There are many minor negatives, one of which I need to do more DD on, namely the previous “exposure” that AUM, through its predecessor, had to chapter 11.

I will not be selling any shares at this time, but will be renewing my search for some hidden gem(s) in the future.

Good Luck to all!