IAM Buys Trelawney

This is how people think. They buy when the price is too high in order to impress their shareholders. Trelawney is sitting on one of the very few undeveloped gold belts in Ontario, the Gogama.

But this is a narrow vein deposit system with modest grades. Trelawney was able to swindle Augen Gold shareholders out of their property by promoting theirs as a low-grade open pit. Whatever geological system the Gogama holds, it still needs to be discovered and drilled off.

Just the same, IAM must think they're getting a bargain. The hostile bid is in the market.

http://af.reuters.com/article/metalsNews/idAFL3E8FR6I520120427