I have no idea if you're right or wrong about this SE, but on the limited research I've done I do believe it's a case by case issue.
After a quick look into Avanco Resources it seems there was a capitol issue there. If they had not sold out there were concerns that numerous capitol raises would have been needed to advance their resources. Also it appears that private equity firms had a controlling say in Avancos business dealings. And yes, Avanco's management team benefited greatly from the takeover. I have a few reasons to believe LCL has a different scenario to Avanco.
Jason Stirbinskis has indicated that he will be looking for a JV partner to develop LCL's leases, which says to me that he's reasonably serious about taking this to the mining stage. Sure, he could change his views on this, but for the moment he seems keen to go the distance. If this happens then I wouldn't think he'd go far past Anglo.
I think LCL's top twenty list is worth another look. Investor Information | Los Cerros This is dated 4th of June 21. Management have a fair bit of skin in the game with Kevin Wilson and Ron Ashton's names there and I gather Jason is listed under one of the funds as well - would appreciate confirmation of this from anyone who knows here. Obviously the top twenty has changed a bit due to DR Fu increasing his share and I will be keeping an eye out for any 2a announcements regarding Anglo converting their options.
I believe there's no immediate problem with LCL's capitol structure. Well funded for current drilling campaigns and if the options are converted then LCL look set for a while.
Personally, if a takeover is to come, I see AngloGold as the most likely. They're already right there in the thick of it with LCL and they'd be fairly cashed up I would say. Besides, if Anglo do convert all their options, they would have a large say in any takeover bid. Not sure they'd be to keen to let a multi-million ounce resource go should it eventuate. Also, in their deal with LCL regarding their share package, they've promised LCL free aerial surveys for the next year from what I remember. I assume that if they were to take us over they're giving LCL ample time to prove up a resource.
Bennyg - if we do get taken over then we're either paid out or we are absorbed by the takeover company and get a parcel of their shares eqivalent in value.
Seth Davis - I wouldn't mind a $50 US pay out from here, should LCL prove up a decent sized resource. If we got anywhere near, or even above, a 10 million ounce resource, we're all sitting on substantial gains from where we are now.
These are just my thoughts and not intended as advice. I do hope this inspires further discussion though because it is a very relevent topic.
LCL Price at posting:
18.5¢ Sentiment: None Disclosure: Held
