Timmins & Beardmore - Northern Ontario

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Message: The Deal

Re: The Deal

posted on May 22, 2009 07:28AM

I'm still way too groggy from a night shift to have any well-thought out opinions, but I do have some half-formed ones.

This whole Kinross involvement, merger with Puma etc is all very interesting. Instead of trying to gauge "what's in it for me" I'd rather look at what's in it for them, and thereby getting at motivation, strategy, etc and THEN deciding if I like what's happening.

Seems to me with the info longbomb and Tibber dug up, there are parallels in the not-too-distant past with Puma as there were with Aurelian; i.e. changing mining legislation,( improper permits ) uncertainty going forward, softness in the metals prices.

Now I don't have any warm fuzzy feelings for Kinross, they know how to move in when a company is weak and strip the company and the shareholders to the bone like a school of piranha when it suits them. They also know how to use the media spin to position themselves and try to exonerate themsleves from any bad publicity, so anyone unfamiliar with the Aurelian Resources story should do a little research on them.

However, being the sly, calculating, avaricious, ruthless kind of folks they are, they also know when THEY are at risk of being targeted. I wonder if Puma, the price having been driven down, having cash in the bank, and most likely many $$$ in tax credit/write-offs was in imminent danger of being raided, so Sage threw them a lifeline and gets to use their cash in lieu of a PP, and in return, Puma has 'safety in numbers" by taking shelter within a very stable company, in a very stable country.

Kinross knows how to sniff out stellar deposits and get 'em on the cheap: I hope the mining world in general has caught on to their operandus modi and engages in some healthy competition for these same deposits.

Their arrival signals the viability of this project, perhaps not the instant increase in SP that we'd all like, but the fact that we have been noticed is a good thing. Where one major is interested, oftentimes there are others waiting in the wings for an opportunity as well...

JMO

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