Comfort & Desire

Disclaimer statement: All the following are assumptions based on my own causation scenarios. It is all fiction and satire. Some occurrences are stated as having occurred, when in fact they follow the logic of my own causation scenario based on available NR’s and not to be assumed true and are only a coincidence if they end up proving to be true. Of course with all forward looking statements, can the statement itself qualify under its own disclaimers?

I'm sure you know all this, Wax, so this post has no new news to contribute. But let's discuss anyway.

How can Dwek say they don't dump shares. Dwek doesn't have a say of what their investors choose to do. In this instance I was told one person at Mineralfields sells due to an unrelated financial necessity, while another investor in Mineralfields is acquiring in a few days. Obviously it's not a lack of FNC confidence and obviously Mineralfields can't tell their own investor not to exit, no matter what the reason.

Dwek is a face man only for Mineralfields. Mineralfields has been very supportive in FNC's time of need. I'm sure they anticipate multiples from Smith. I hope they are not nice guys in tolerating FNC decision making delays, tomfoolery, unneeded dilution, lack of profit, and profit distribution.

I'm curious to know their opinion and how they'd prefer FNC proceed with Champion properties and spinning out Lac Lamalee. Do they want immediate $2 t0 $3 profits in the first quarter from fast deal-making by selling Lac Lamalee and CHM interest, or do they want to develop Lac Lamalee for a year to two alongside Champion and get $4 to $5 per share.

Can MF contribute connections from their investors to assist Champion garner competing bids for Fermont to increase higher profits then $5?. I know I speak in price per share. However, we need to look at Fermont properties in price for property vs. FNC market caps.

For example when we say $5 per share, 5x60mil=300million. Would you buy FNC's unproven LacLamalee and 17.5% interest CHM's 1 billion (min) tons of ore for 300 million? Also, CHM has not fully explored Fire Lake North and Bellechase, so this number would increase. And there are still 13 more properties to increase. So the longer a company waits to make an offer for FNC's Fermont interests, the more likely CHM's 1 billion will double or triple. Do you wait? No, which is why, one can assume, CHM already approached FNC.

Also, would you pay 300million to FNC, when our market cap is currently only at .50cx60mil=30mil mc? That’s a very generous 10 bagger offer. From Wisco, the Russians, or Arcelormittel’s perspective, a very "generous offer” (not really) might be 120 million for all of FNC, including all Fermont interests, Magpie, McFaulds, and everything else. That's 4 times our current SP to 2.00/share. They no longer need to try to convince all of us tight-holding shareholders to accept the deal. They don't need to approach Smith. They only need to approach Mineralfield's and their 25% to 30% hold on FNC and make an offer they'd accept.

I'm fairly sure the investors in Mineralfields would feel more comforted at an assured 4 times multiple this quarter then wait 2 to 5 years (8 to 20 quarters from now) for a more desirable, but un-assured, greater profit.

Let’s look at Champion’s perspective. They already made an offer to Pat and FNC, which Pat accepted due to estate planning firming issues. Smith wisely did not accept. So they approached him again, one assumes recently, and one could assume with an increased offer or agreement. Again, we assume, Smith wisely did not accept.(For those in the know, one can conclude, the new CHM offer, put firmly in place a base profit exit point for FNC, making the current SP a slam dunk entry point.)Clearly Champion has incentive to acquire FNC. Is it because they want to control 100percent of their own company? Do they feel my above scenario is likely, and they don’t want a major interested in making them an offer, obtaining 17.5% voting power via FNC? Is it because they already have a major’s offer, but contingent on the offer is CHM needs to acquire FNC’s interest, due to the first refusal rights issue?

One can only assume or guess at the details of CHM’s offer. However, clearly Champion is motivated to acquire FNC for some reason.Can one correlate that every-time they prove up another 1/3 billion tons ore do they also need to increase FNC’s offer 1/3?

Whatever the scenario the future holds for Fancamp, splitting off Lac Lamalee makes sense. It gives more negotiating power, staves off an FNC takeout by limiting a hostile to just Lac Lamalee. In spinning off Lac Lamalee, can one include CHM’s 17.5% interests and perhaps Magpie. Is that possible? Lump all the iron together?Easier to market, clarifies negotiations, and increases shareholder’s portfolio.

What do you think?

-sg