Today I get a mail from the criminal scam pusher Christoph Berndt, aka boersenbrieflemming, who works for the scum-ridden promotion system in Germany under the auspices of Hank Van Alphen's Cardero Group of companies. Berndt writes:
Title: DRI
If you have cojones you should comment it.
Obviously he has a hard on about the move in Dorato (DRI.v) these last two days.
So certainly you scumbag asshole, anything to shine the light on the illegal affairs run by Frank Gagel and you, in cahoots with the board of directors at Cardero, the English language scum pusher "Value Pro" in Arizona and all the others in the spider's web of corporate deceit that give even the pushers in the Frankfurt bourse a bad name. Here's a comment:
Dorato Resources, in the midst of an all-time historic
bull run for gold, is still 14.29% down in 2010.
Happy now? Or perhaps, Christoph, it's about time your controllers told you to...
Canadian brokerage mining analysts have a hard time and suffer....from the size of their egos because it must be physically painful for them to squeeze through doorframes due to the enormous diameters involved. Rule One amongst the dumbasses in suits is never, but NEVER admit you're wrong or you made a mistake about anything because it's just not the done thing to be honest, is it?
However, if you do watch the sector carefully you get to see when the analyst has decided they've put their foot royally into it and pumped the wrong dog. Take for example Indi Gopinathan, analyst at Scotia that follows and has liked Minefinders (MFN) (MFL.to) for quite some time. Up to now Indi has kept bullish on MFN despite being such a pisspoor performer and has forgiven its trespasses. For example on August 5th, just after a bad set of numbers from MFN here's a report of her opinion:
"This was a miss on consensus and Indi (the analyst) believes any pullback on MFL today should be bought........ The Q2/10 quarter likely won’t change investor’s minds but that is backward looking and Indi believes the inflection point is right now."
Then on September 29th, when it turned out that 2q10 wasn't that "inflection point" after all (surprise surprise) and we're going to have to wait til 2011 (at least) for MFN to get its jive together, Indi was still stubbornly bullish, saying that "..any negative reaction to yesterday’s news (w)as a buying opportunity." Well, she sure got plenty of chances to buy!
However, today's Scotia daily report has Indi rather more subdued. As we mentioned in paragraph one of this post, the admissions of guilt and/or error are never explicit (that would never do) but now she's actually gone to see the Dolores trainwreck the talk from Indi about buying ops and such has disappeared. We now get this:
MFN: Minefinders Tour Takeaways (1-SO, US$14/sh target, Indi Gopinathan): Earlier this week, Minefinders hosted Scotia clients on a tour of the Dolores gold and silver mine in Chihuahua , Mexico . In the short term, it appears the liner tear issue will negatively impact both Q3 and Q4 production as all of the Phase 1 leach pad was taken off leach in August. Indi currently models Q3 production that is 40% below guidance with Q4 figures 8% lower than company expectations. Longer term, block model reconciliation could lead to a 10% grade improvement over the average reserve grade. While short term issues continue to plague the company, Indi reiterates her 1-Sector Outperform rating and US$14/sh target with the view that Dolores is a good asset and a potential M&A target.
The change is subtle, but when you're attuned to these things the message is clear enough and now IKN confidently predicts that Indi will "lower her guidance" on MFN the next time it misses anything from its current guidance slate. Going by this pathetic excuse for the mining company's track record, that will most probably happen very soon. DYODD, dude.
Rob McEwen is many things to many people, but only the dumb would take away from his genius for promotion. He smells the new money interest at exactly the right time, sets up the promo and WHACK WHACK WHACK the new investor sees just how cheap Minera Andes (MAI.to) is (according to the owner of 33% of the stock, that is) at just the right time and from several different angles....
Look, the copper!
Look we produce gold and silver!
Look at the exploration potential!
Look at what happened to AND.to recently, newbie!
....all the angles that us jaded longtooths have always seen for X or Y number of months or years while never respectfully moving the stock for him. So now, all us "yesbut" merchants that knocked Minera Andes (MAI.to) for so long and just used it for a quickflip 20% here/15% there trading vehicle get to look stupid, while those that believed McEwen and were equipped with the Zen-like patience are sitting on a heavy win from a very short space of time.
Rob McEwen, you are a true genius at this mining game. I salute and applaud your brilliance.
I can't believe this, I truly can't. Back in late September Brent Cook published a set of three You Tube videos, totally free to go watch (here, hereandhere) that took the viewer through a recent site visit Cook made to the Yukon area so red hot amongst the sector right now. In the three videos that total 16 minutes you get to see what this top quality economic geologist does, looks at and looks for when on a field trip and evaluationg whether the company running the show is a buy or not.
The videos contain a wealth of information, stacked to the brim with smarts about rocks and I defy anyone not to come away from then knowing more than they did, even the most experienced of professionals. As for the retail metalhead (i.e. you and me) it's impossible to miss these tutorials.
And that brings me to the utter shame you MUST feel immediately, retail metals and mining investor. I went and watched these vids when they first came out, thought they were bound to be a smash hit with tens of thousands of viewings etc etc. But then this morning a commenter left a "good BC vids" type comment on this post, so out of sheer curiosity I went to check on viewer number so far.
ONLY TWO HUNDRED AND SEVENTY ONE VIEWINGS FOR THESE VIDEOS!!
I can't believe this (and it's even less for parts two and three, 181 and 156). The information contained in these Brent Cook videos is 100% solid gold, but only 271 people (probably less, if you're like me and watched them over again) people have bothered to go see these videos. ARE YOU GUYS TOTAL MORONS? DO YOU REALLY WANT TO BE STUPID FOREVER AND RIPPED OFF FOREVER? I mean, you must be really happy to be absolutely dumbass stooooooooopid about junior mining companies because you make NO EFFORT AT ALL TO EDUCATE YOURSELVES, do you? No, you much prefer to follow the scam-mongers of the mining commentary world that lead you by the nose into the exact stocks that make the maximum amount of money...for them.
HOW THE HELL CAN YOU IGNORE GREAT INFORMATION AND GET SUCKERED IN BY THE SCUMBALLS? Hang you head in shame immediately, mining traders.
So now the solution. WATCH THESE VIDEOS NOW. Get smart on rocks, dudettes and dudes. You need to see these most excellent videos and you need to see them right now. Take 16 minutes aout and watch what Cook has to tell you because his words will make you a better and more profitable investor, period. You have no excuses left not to watch these. Do it now. Right now.
The excellent portrait photo El Comercio is running on its front page today.
Click to expand cos it get very big
Congratulations. This Nobel Prize for literature is 100% deserved. On thinking, I really haven't agreed more fully with a Nobel decision ever. A cheer for MVLL, for his home town of Arequipa, for Peru, for his adopted Spain, for South America, but mostly a cheer for the beauty of his written word.
...silver the metal (using the ETF SLV as proxy) compared to ECU Silver (ECU.to), year to date.
This CotD going out to Mexico Mike. Just making sure he realizes just how freakin' stupid he looks these days. You take dirty money from scam companies to pump them and, Mister Kachanovsky, it will eventually blow up in your face.
UPDATE: No, I'm not "your pal" (a reader informs that you refer to me in that way). I'd rather see you in jail but unfortunately what you do isn't illegal...just totally immoral.
Ok, just a quickie and I'm out the door. This text is from IKN74 last Sunday, concerns our ongoing coverage of Batero Gold (BAT.v) and shows a little of what goes on at the weekly.
Batero (BAT.v): Making strong progress (and raising money, surprise surprise)
Since we first featured Batero Gold Corp (BAT.v) in the ‘Market Watching’ secion of IKN68, the stock has gone great guns (here right is the chart that shows the performance from then to now).
(chart not shown here on blog, but visualizes the six week run from the $1.20s to $1.90s)
It has been running a $10m bought deal placement first announced on September 24th (19) at $1.60 per unit (share plus half warrant at $2.35) but last week increased the placement (20), so assuming the original overallotment ($5m gross proceeds) is going to be filled as well, BAT is now looking to add $15.75m in gross proceeds to its coffers...all very tasty and good for anything the company wants to drill for the forseeable future.
Gold explorers are in a sweet spot right now and there are plenty of management teams out there raising cash on the back of the suddenly elevated share prices. Now, it’s your guess to my own as to whether this secular bull will continue, but it’s 100% unsurprising to see the sharper teams (that word deliberately chosen, as it’s a double-edged sword) out there adding cash and securing their medium-term futures as explorers.
BAT smacked of a decent opportunity when first highlighted, though not the profile your author personally prefers. Thusly it was featured as a headsup story in ‘Market Watching’ without making it to the formal ‘Stocks to Follow’ list. Here we are, six weeks later and the stock 53.6% higher. We’ll continue to outline opportunities without making them recos in the future, highly esteemed readership, because your author continues to be acutely aware that his way of investing is not the only way of investing.
Your humble scribe is bugging out, but only til later tonight. Got some non-biz stuff to attend to (which involves a beach). Til then, I'll leave you with the inimitable Jack
“I woke up as the sun was reddening; and that was the one distinct time in my life, the strangest moment of all, when I didn’t know who I was — I was far away from home, haunted and tired with travel, in a cheap hotel room I’d never seen, hearing the hiss of steam outside, and the creak of the old wood of the hotel, and footsteps upstairs, and all the sad sounds, and I looked at the cracked high ceiling and really didn’t know who I was for about fifteen strange seconds.”
Your humble scribe ran this recording on his twatter last night and now it's time to note it here at IKN as well. It seems the northern milquetoast pardoners of explicit violence against Rafael Correa, all the hangwringing academics that try their best to follow S.Am affairs from up North and just end up looking teh stoopid every time, will finally have to admit that Ecuador's September 30th happenings that centred around the country's police force in Quito weren't just a call for social justice, or a protest gone wrong. As we pointed out on the blog last week it was clearly a coup attempt.
M'lud, we offer evidence. This link is to a recording of police radios that day and captures the ill and violent intent of the coupmongers all too clearly. In Spanish of course, you can either take my word for things or get your own translation done but amongst the choice phrases used by the police who fired tear gas canisters at their President and managed to shoot dead one of the military personnal that was shielding Correa as he left the hospital under fire in the late evening are the following:
It was an attempted coup. Sez me, sez Correa, sez all the Presidents of the region who signed the Unasur declaration from the right (Santos, Piñera) to the centre (García) to the left (Morales, Chávez) and all points in between. It's your choice to believe the bullshit CNN would like you to believe but me I like the truth, not gringospin lies.
Checkout Daily Show, Stewart was so good last night as he got in touch with his better Sanchez.
Fortuna Silver (FVI.to) up 5.9% at $3.24 and bouncing back from yesterday's handwringing. O RLY? c
Mercer Gold (MRGP.ob) down 8.9% on the day that the metal in its name hits a new all-time record. Now, let's just keep it simple and think about those two facts. See any clues about the real nature of this company?
Constitution Mining (CMIN.ob) down 10.0% at $0.27. See MRGP commentry.
Ventana Gold (VEN.to) up 4.3% at $10.57 on the back of another good NR with the new Aserradero zone showing gold too, now. IKN predicts this one much higher than today's price come December 31st 2010. So there.
Apparently and according tothis morning's press coverage those 33 Chilean miners could be out as soon as this weekend, as one of the drills is just 160m away from the underground dudes. Meanwhile we can report that apparently they've been getting a little fussier about supplies recently, at least by the evidence in this photo.
We like Mercenary Geologist Mickey Fulp and we really,really like the article he published over at Rare Metal Blog yesterdaythat ripped a new one for an outfit known as Australian American Mining (AIW.ax). Go follow that link yourself to find out why, but just as a general jist feeling thing, here's an extract:
"...Okay, well and good: Promotional but no big red flags for me except the hosts are complex pegmatites, which are usually small and seldom have the size and grade to make mineable ore bodies, especially in the southwestern United States.
Love it! Y'see, it's a bit like the Ottotrans™ posts we run at this humble corner of cyberspace...only much better. When a ranting fool such as your author rips into these thingsit's one thing, but when somebody like Fulp, a professional and highly experienced geologist, gets busy on these "marginal companies" (let's say) and the way they obfuscate, bewilder and represent themselves as HarderBetterStrongerFaster than they are...well, it's another level. Go Mickey!
So go read Fulp's words yourself by clicking this link. You'll learn stuff about REEs, you'll learn about News Release red flags and you'll learn that there are people such as Mickey Fulp out there in the wild world of the interbwebnetpipes trying their best to protect you from scamsters. DYODD.
I am burdened with a memory. Back in the 1990's, wherever I was living at the time (four countries were in play in the period) I'd get home the end of a day and switch on CNN to watch Lou Dobbs on Moneyline (that period he did good work before he got all mouthy and anti things). At the time I personally nicknamed him "Lou AndTheNasdaqRoseBy Dobbs" because it seemed that phrase would come forth from his mouth nine out of ten programs.
So I look at that gold chart above and there's just a twinge of anxiety about what happening right now. Be clear I'm not calling any tops or ends of bull runs myself, it's more like displaying a bit of my own wall of worry, that phemonenom all longs suffer as they stay long through a bull run. DYODD, dudette. DYODD, dude.
Kitco has bolted on some journalists to its organization recently and now has 'Kitco News' up and running, which probably isn't a bad thing for us metalsheads. And if what we saw from new recruit Debbie Carlson yesterday evening is anything to go by, then there's quality on offer too. This paste-up is of a short but sweet report so I'm going to break with the norm here at IKN and re-print it all. It's also from the line known as "market nuggests" so there's plenty reason to go back and read more, lots of little snapshots on display:
(Kitco News) - With gold making new highs, investors are looking for forecasts for gold prices following actions of gold miners, central bankers or chartists. None of them have been right in the past 40 years, said Citigroup Global Markets. “When gold miners had to buy back massive hedges, they proved we should not look to them for gold-price forecasting. The same applies to central banks, which sold right at the bottom. Bankers don’t get it right, either. Many famous forecasters (high-profile academics and high-profile chartists), after gold had fallen from a high of $875/oz to $600/oz in 1981, forecast it would soon shoot above $1000. Instead, it entered a 20-year slumber party,” the bank wrote. “We now have popular forecasters (popular because they called sub-prime right) forecasting that gold is on its way to $4000/oz. It may well be. The history of unsuccessful forecasting shows it also may be on its way to $800/oz. And yet these high forecasts are no less popular than they were in 1981. As the famous saying goes, ‘Its deja vu all over again’.”
By Debbie Carlson of Kitco News
IKN fully agrees with Carlson, who uses a window created by C to ram home some plain truths to Kitco readers. Yup, them there industry experts (e.g. dumbasses in suits, dumbasses in hardhats and in the case of the newsletter writers dumbasses in pyjamas or underwashed t-shirts) are not to be relied upon by any sane person. Really. And definitely includes Jon Nadler of Kitco as well, of course. So what comes up next is not for Carlson (cos IKN has decided it likes her) but for all the other false friends and maniacs that would be our ego-ridden kings and gurus. Will you ALL please just
Newsfrom the Argentine Auto Chamber of Commerce, ACARA, will not go down well with anyone who's daft enough to think that the country is about to implode and die on us again (however many rabid righties might like to see people suffer).
Recent figures show that Auto sales are now at new record levels (the traditional December spikes notwithstanding). Get all the details from the ACARA website, right here.
Meanwhile, the cynical amongst us (gosh, I feel lucky not to be one of those) could note that the economic and life-standards rebound happening in Argentina is mightily well timed for next year's Presidential election, with one of the two Ks looking to keep control of the country. Just sayin'.
...this. For the first time ever, Bolivians have more of their savings in local currency (i.e. the Bolivian Peso) than foreign currency (which basically means the US Dollar).
click to enlarge
Now tell me again how Evo Morales has dragged Bolivia back and not moved it forward? Here's the original Spanish version of the chart from which this humble scribe translated....
Jurgen Schuldt over at Memorias de Gregorio Samsa has all the details of the opinion poll published by Santiago Perez OPE (one of Ecuador's main pollsters) with six screenshots of the published poll. Go there to get the details, but let's just note one datapoint to give you a taste:
September 25th 2010 (before the police protest/attempted coup last week): Positive Evaluation of Correa Government:
65%
October 2nd 2010 (after the police protest/attempted coup last week): Positive Evaluation of Correa Government:
This is must-see footage. Over the weekend President Evo Morales played in a 'friendly' football (soccer if you like) game for the government MAS team versus the opposition MSM party, the party that holds the mayorship of La Paz. After a dirty tackle and some sort of mouthing off by the MSM team, Evo took justice into his own hands, footy field style:
Yep, a nice hard knee straight in the bollocks of the defender. The ref red-carded him and off he went. The match finished 4-4, by the way.
About time we saw this kind of action in a few regional congresses, methinks.
This was one small section of yesterday's IKN Weekly issue 74 and considered the passing of the so-called "Glacier Law" by Argentina's Senate last week. As usual in the 'Regional Politics' section of the weekly we try to cut through the debate and handwringing and get to the practical points that concern mining sector investors
Argentina’s ‘Glacier Law’ passes the Senate
On Thursday Argentina’s upper house, the Senate, finally voted through the so-called “Glacier Law” that’s designed to protect glaciers in the upper reaches of the Andean Cordillera and stop mining companies from disrupting them, thus guaranteeing them as a source of water supply etc. There were two law projects on the table for the Senate to vote on and the tougher-worded one of the two was passed by a vote of 35 to 33 (one abstention). Below in the appendix find a Reuters report (18) that neatly sums things up.
The practical results of the law passage (assuming President Cristina Fernandez signs it into law as she said she would) are currently under debate, with some saying the feature ‘Pascua Lama’ project of Barrick is under threat, while others saying no. So let’s make this as simple as possible: If this law threatens ABX at Pascua Lama in any way, be sure that Cristina will veto it. It’s really as simple as that. Fernandez is very pro-Pascua Lama, Barrick has already made provisions to its mining plan that mean Pascua Lama mineral directly under the nearby glacier will not be mined or even put in the mining plan and the talk from the environmental groups of this law being a triumph that will stop Pascua Lama in its tracks will be short-lived. The mine will happen, period.
However, the new law is likely to add an extra layer of bureaucracy (as if there weren’t enough already in Argentina) to other projects in the upper reaches of the Cordillera. One of the key points of the law is that Argentine Institute of Snow Research, Glaciology and Environmental Science (translated) is now in charge of making a nationwide inventory of glaciers and afterwards it will also be in charge of making the glacial studies needed for environmental permitting for any new mining project. In other words a new department is now involved in the permitting process, over and above all the current processes.
The bottom line is that 1) ABX will get its mine at Pascua Lama but 2) there may be a temporary delay or two due to it. Meanwhile 3) Argentina, already a pain in the butt when it comes to red tape, just saw another layer added to any company that wants to develop a high mountain project.
HEEEELP! Silver has plummeted to just TWENTY-TWO DOLLARS AN OUNCE! Disaster!!!! How on earth can a miner producing silver at a negative nine dollars an ounce cash cost possibly make any money now???? SELL SELL SELLLLLLLLLL!!!!!!!!!
You market tradery type people never cease to amuse.
Vanity of vanities, saith the Preacher, vanity of vanities; all vanity. (Ecclesiastes 1;2)
Piñera sez that he hopes to get them out before October 17th. This date is important to him because he's off on a beano to Europe and doesn't want to miss the photo-op. Here's the quote:
"We're very close to rescuing them and I hope to share this very important moment"
IKN prefers photos of Lugo from the time when he had hair
Last Thursday, President Fernando Lugo of Paraguay had a serious relapse in his current fight against cancer (he's under chemotherapy right now) and had to be rushed to the specialist hospital treating him in Brazil. Well, the good new is that today he's out of intensive care and likely to be discharged Wednesday.
An interesting snippet from today's Reuter's Metals Insider daily. Unseen outside of the Reuter's paywalled service til today.
ICSG sees copper market in 400,000T deficit in 2011
LONDON, Oct 1 (Reuters) - The global market for refined copper is expected to swing into a 400,000-tonne deficit for 2011 as increased economic activity boosts demand to outstrip growth of refined production, the International Copper Study Group said.
The group revised its forecast to a deficit from an estimate of a 240,000 tonnes surplus, made in April. "In 2011, refined usage is again expected to increase in all major world markets, with global demand expected to rise by about 4.5 percent," the ICSG said in a note on Friday. "Industrial demand growth for copper in China, which is based on anticipated semi-manufacture production, is expected to grow by about 6 percent in 2011," it said. China is the world's top consumer of copper, accounting for about one third of total demand.
The group also revised its 2010 forecast to a 200,000 tonne surplus, from an April estimate of 580,000 tonne surplus as growth in copper supply matches growth in copper demand, roughly in line with levels seen in 2009. During 2012, the market is expected to be more closely balanced, as an increase in refined copper production more than keeps pace with sustained demand growth.
Holy reds-in-beds, Batman! The Hoi-Polloi of Lima will be shaking in their boots to find themselves rules by a....sorry, can't do it cos she's not some raving hard lefty commie puppet. Susana Villarán, now looking very close to the winner's circle for the race to be Lima's mayor (58% of votes counted and she's over 2% up....in the world of stats that's getting very close to a lock), is a centre-left social democrat, an upholder of good things and someone who's railed against Castro and Chávez more times than is necessary for a human with a brain to understand where she's coming from.
Anyway, here's the vote count so far, at 8:40am Monday Lima time. Gotta love Peru...compare the 120m votes that Brazil counted and published in four hours last night to the 60% of 5m votes that Peru has taken 28 hours to count so far. Time to throw the abacuses away, dudes.
Finally, way back in 2008 this humble corner of cyberspace interviewed Villarán. You can find that Q&A on this linkto know more about her.
UPDATE: 2pm Lima time and the latest count with 65.188% of the votes officially registered is Vallarán 38.77%, Flores 37.18%. Data
Holy wowsers! Check out the numbers with 82.29% of the votes counted already:
Marina Silva of the Green Party, who was polling around 10% all through the election season (give or take), has taken chunks out of Dilma Rousseff's vote and stopped her from becoming President of Brazil until October 11th. Dilma will still win then (she runs off against Serra) but this result goes down as a minor shock if confirmed by the total count. Data from here.
Brazil goes green. Can't say it's a bad thing, either.
IKN74 has just been sent to subscribers. Lots of words, lots of numbers and even a new buy reco included this week for a copper company. I'm now off to down a glass of decent Chilean CabSauv. Just one glass, mind you*. You be having a fun Sunday now y'all.
I heard this song the other day in my fave restaurant on a great sound system and thought "I like like like", a decent slice of the happy tropical-pop-salsa that South America does very well. But due to hearing it I looked Fanny Lu's biog up and it turns out that she's unspeakably beautiful, too. Fanny Lu is also 40, married, two kids, Colombian and I've heard plenty of her songs on the radio and stuff over time. So now that I've fallen just a little bit in love for a little while I thought I'd share before the infatuation wears off (cos it will...it always has done....except in one case so married her). Enjoy, she's got a great voice.
The UK's Daily Telegraph isn't my idea of a good read normally, but this one is precious. Yesterday (Friday) Citigroup (C) held a Conference Call featuring Ireland's Finance Minister, Brian Lenihan, designed to calm fears over the current financial situation in Ireland. It didn't go according to plan, however. Here's an extract, go here for the whole thing:
Mr Lenihan had been speaking for less than two minutes on Friday before a mistake by Citigroup meant that the bank's clients were all able to be heard on the line. Between 200 and 500 investors are understood to have been on the call, and as they realised their lines were not muted many began to heckle Mr Lenihan. Some traders began making what one banker on the call described as "chimp sounds", while another cried out "dive, dive". A third man said "short Ireland" before adding "why not short Citi too?" As the call descended into chaos, with one participant heard to say "this is the worst conference call ever", Citigroup officials shut down the line.CONTINUES HERE
My stars, how many times have I sat through a bland as dishwater CC and wanted to do the same to the sophistry merchants on the other end of the line?
UPDATE: Darn, knew it was too good to be totally true. Fergus in the comments sectionleaves this link.(y'see what I mean about the Telegraph? ugh). Still doesn't change my view about what ConfCalls should allow me to do to BSing CEOs...
This is interesting. Thanks due to reader K for the headsup. IKN highlights in red and removes the AT sign from the howard's e-mail address (cos a day after getting it on a blog he'll be offered all sorts of pills and suction devices).
Law Offices of Howard G. Smith Announces Investigation On Behalf of Shareholders of Capital Gold Corporation in Connection with the Proposed Acquisition of the Company by Gammon Gold Inc.
BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that it is investigating potential claims against the board of directors of Capital Gold Corporation (“Capital Gold” or the “Company”) (AMEX:CGC) related to the Company’s agreement to be acquired by Gammon Gold Inc. (“Gammon”). The proposed transaction is valued at approximately $288 million.
Under the terms of the definitive merger agreement entered into by the parties, Gammon will acquire all of the outstanding common shares of Capital Gold for a cash payment of $0.79 and 0.5209 common shares of Gammon for each Capital Gold share. The proposed transaction implies a value of $4.57 per Capital Gold share, based on Gammon’s September 24, 2010 closing price on the NYSE. If the transaction is completed, it is expected that current Capital Gold shareholders will own approximately 20% of Gammon. The transaction is expected to close in late 2010. The investigation concerns possible breaches of fiduciary duty and other violations of law related to approval of the proposed transaction by Capital Gold’s board of directors.
If you are a shareholder of Capital Gold, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to howardsmit AT howardsmithlaw.com, or visit our website at http://www.howardsmithlaw.com.
TORONTO, and NEW YORK, NY, Oct. 1 /PRNewswire-FirstCall/ - Gammon Gold Inc. ("Gammon Gold") (NYSE: GRS, TSX: GAM) and Capital Gold Corporation ("Capital Gold") (TSX and NYSE AMEX: CGC) have entered into a definitive merger agreement pursuant to which Gammon Gold will offer to acquire all of the issued and outstanding common shares of Capital Gold in a cash and share transaction (the "Acquisition"). The total consideration for the purchase of 100% of the fully diluted in-the-money shares of Capital Gold is approximately US$288 million or US$4.57 per Capital Gold share based on Gammon Gold's closing price on September 24, 2010 on the NYSE.
The Acquisition has the unanimous support of both companies' Boards of Directors and Officers and strengthens Gammon's position as a leading Mexico focused, growing gold producer.
Under the terms of the Acquisition, each common share of Capital Gold will be exchanged for 0.5209 common shares of Gammon Gold and a cash payment in the amount of US$0.79 per share. Based on the yada yada continues here
So CGC gets its white knight to fend off the Timmins dudes and GRS gets to spend a bit of its cash pile. Meanwhile, Rene Marion of GRS speaks to IKN*:
"Yes, Otto. Well we were fed up with you poking fun at us and pointing to the fact that we couldn't make a profit to save our skins, so we just went ahead and did the obvious thing. We bought a profitable mine."
Let's see how long it takes before GRS pisses off this set of workers and gets them walking out on strike....
All this and insight on Mexican Cantina Cultureoffered up for you by The Mex Files, now back and posting after his sabbatical. All with a side of re-fried beans.
The Heads of State and government of Unasur, meeting in the San Martín Palace, Buenos Aires, Argentina, 1 October 2010:
1) Reaffirm their strong commitment to the preservation of democratic institutionality, the State, constitutional order, social peace and the unrestricted respect for human rights, essential conditions for the process of regional integration.
2) Strongly condemn the attempted coup d'etat and subsequent holding of President Rafael Correa Delgado, as occurred in the sister Republic of Ecuador on September 30.
3) Celebrate the liberation of President Correa Delgado as well as the quick return to institutional and democratic normality in the sister Republic. We express the need that those responsible for the coupmongering actions be judged and condemned. In this context we reiterate the fullest and most decided support for the constitutional government and highlight the role of those institutions in the re-establishment of constitutional order.
4) Affirm that our respective governments energetically reject and do not tolerate under any circumstance any new challenge to the institutional authority nor any attempted coup against the civil power elected legitimately and warn that in the case of new outbreaks again the constitutional order will adopt concrete and immediate measures such as the closure of borders, suspension of commerce, suspecnsion of air traffic, suspension of energy provision, services and other.
5) Decide that their chancellors will travel today to the city of Quito to express their full support for the constitutional President of the Republic of Ecuador, Rafael Correa Delgado, and for the people of Ecuador, indispensible participants in the full restauration of democratic institutionality in that country.
6) Agree to adopt in the fourth ordinary summit meeting of Heads of State and government of Unasur, to take place on 26 November in Guyana, an additional protocol to the constituent treaty of Unasur that establishes the democratic clause.
The end of the month is in and so we catch up on the performance of our basket of small silver stocks, as promised in the last update dated August 31. So here we go:
It's safe to say that the silver stocks we follow had a very good September all told, but some are doing better than others. Top performance by quite some way now is from U.S. Silver (USA.v) with over 100% racked up this year and looking good for the 2010 full year prize now. We applaud this stock and all of those who were smart enough to buy some.
First Majestic (FR.to) had a superb September and has moved smartly into second place (up 70% or so YTD) on the back of strong fundies results. Bear Creek (BCM.v) is in the bronze medal spot, up 60% approx. Then comes Fortuna Silver (FVI.to) up 40% YTD and then, surprisingly, the silver ETF (SLV) in 5th spot, which means there are still a whole bunch of these stocks that supposedly offer leverage to the metal that are lagging Ag. In the case of MAG Silver (MAG.to) in 6th the difference is tiny, but the four stocks underneath (EDR.to) (GPR.to) (ECU.to) (IPT.v) have far fewer excuses for their poor performances.
So, catch you all end of October for the next update in the race. Please be having nice day. Thank you.
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