Finally, the Chinese enter the picture!
posted on
Dec 19, 2011 06:46PM
Keep in mind, the opinions on this site are for the most part speculation and are not necessarily the opinions of the company WITHOUT PREJUDICE
Although we do not know the scale of these meetings, I believe the biggest significance of this, is that Murry and colleagues have created awarness of our company there to a higher degree than what has been accomplished in the past. By reading the release, its pretty apparent that much interest has been stirred in China, and they are definitly intrigued to learn more about us. The mention of "high-level" meetings is very interesting and makes me think of how far a reach it is from these high-level people, to the top of the Chinese Government. I would guess, its not all that far.
IMO, the Chinese would be an appropriate bidder for the Tesorro should it turn out to be what some of us think. I also believe that the Chinese should be allowed into the bidding process if/when it begins. To get the maximum value for shareholders, I don,t believe the Chinese will be left out of a bidding process, and at some point in time, we may see some other larger entities expressing interest. To get maximum value, the more bidders, the better for the auction process. I also believe Lori will be compelled to fulfill her obligations to shareholders, by getting as many different bidders as possible in the auction process, if the property proves to warrant this type of action.
In the meantime, this considerable investor interest from China, should add substantially to our sp. For the great interest thats been revealed at this sp, says to me, that the Chinese see much more value to come. Also, I should mention the possibilty of a future bidder/interest could have been at one of these meetings. If they were, and like the assays when they come out..............
I am gonna back up here for a bit, back to the time the 2010 tech report was released, the one with all the pretty Quantec images. It has been from that time forward, that we have not received one assay or sampling results. Some will say Lori does not have to release those for long periods, if she doesn,t want to. Those people, IMO, are right, but only to a certain degree. I believe you have to look at the time that has elapsed without any sample numbers from the property and Lori,s obligations to shareholders. It would appear that she has no concern of the sp, as she had in the past, prior to the Tech Report. Since then, everything has been secretive,and seems to be taking longer. Around that time Indeva was contracted for advisor services. Why would a little venture company need this? Surely not just to consult on when and where to drill or when to do a PP, what investors to target,etc, but it could be suggestive of a much more importanrt reason.
It is my opinion only, that if Lori would have received and released any assays/samples after the Quantec images were released, it may have prompted a premature offer. So, apparently she directed all assay results be sent to McElanney, be compiled and away from her eyes. This inturn would accomplish several things;
1) prevent a premature hostile offer.
2) enable Lori to do PP,s without having to release material info,(because she was not in reciept of it).
3) Prevent Lori from getting in a rush, because an offer could be on the table, not allowing her to do more PP,s to get more money to further prove the Tesoro and maybe be forced to accept a low ball offer.
4) The Quantec showed 12 more significant faults/fractures on the property that Lori knew nothing about. At that stage, only 30% of the property had out crop, the other 70% was buried under overburden and wasn,t explored by either SLI or the informales. This gave more time to test the Quantec images and 12 other major lineaments along with the other discovered anomalies.
So, at this time, when she has much of the above accomplished, she may release a tease bit of assays, but maybe not enough to prompt an offer, unless she is ready.
I believe some thought should go into the impact of todays release on our future sp. To maybe give you a better perspective on what to look at, a friend told me today that China has 300 million up and coming middle class citizens. Our Canada population is somewhere around 30 million. If enough interest and awareness was created there in this recent trip, it could put our sp through the roof. If you guys take a look at the ask side on the level 2, there was probably only a few 100,000 shares for sale. If these Chinese people decide to invest now, I don,t know where they will get the shares, without pushing the sp a lot higher.
Where other interests will see this NR also, it may prompt more buying from this side of the ocean. If there were majors interested before in our Tesoro, they may just become interested in our sp as well. Then you have to think, what will the shorters do?
This may very well be one of the last chances for the shorters to get out, and for anyone new to get in at a reasonable price.
tick,tick,tick, tick.........................