Seems obvious that the new options are designed to kill off AGUO to get rid of Scook & friends completely. They did it with YRRO so expect the same here.
Management will be aware that with only a few months to go, even very good results of any further drilling undertaken prior to expiry, AGU are very unlikely to rise above 20c, therefore rendering AGUO worthless.
Why take the risk of buying AGUO when AGUOA has an exercise price of .035 and plenty of time to be worth multiples of their current price. If AGU reach say .15 in the coming months AGUO are still well underwater yet AGUOA will be valued at .115 minimum. May as well just buy the heads at .03 for a cheap entry anyway and take no chances.
There is of course the provision for management to issue new options on a 1:1 basis to optionholders of AGUO who hold at the expiry date as happened with GPN (PDY) in 2008. Very unlikely considering the board changes since then and the decision taken by YRR not to take any action to reward optionholders who were screwed over by previous management.
BTW, that loan to Merredin Power PTY LTD (MPPL) sounds suspect. Why loan $500k to a company on 22/4/09 that was only registered on 17/3/09. Seems a very high risk decision and sounds similar to some of the previous deals involving buying private Scook controlled companies set up to rip off shareholders. The loan was due to be repaid with interest by 27/11/09. Would be good to know that MPPL has honoured the agreement but we probably won't find out anything until the next quartely report at the end of this month. I notice MPPL has recently (20/11/2009) changed its share structure. The timing of this, just a week prior to the debt repayment may indicate something happening behind the scenes, either a capital raising to a third party or provision for AGU to take an equity stake in MPPL. Currently we have no idea what assets MPPL have. More info from the company would be good, including why they gave MPPL an unsecured loan and what was behind this decision.
Even though the lack of detail is a concern, the board has set up AGU to have a stellar 2010 if future drilling can prove the fe resource is as robust as the conceptual target outlined recently. The big winners of course will be those who were part of the capital raising at .02 and the amazingly generous partly paid shares which raised just $7000 upfront for the issue of 70m partly paids at .02 each. The $1.4m which will be raised at a later date seems like very unneccesary dilution considering the likehood of a much higher sp by the time the first call is made at the end of this year at the earliest. Just my opinion formed by news released so far. Very keen to see the board become more proactive in 2010.
All the best in 2010 and more importantly, may it be a safe year to all posters and their families (regardless of their personal views) as no amount of money can replace lost loved ones.
AGU Price at posting:
3.2¢ Sentiment: None Disclosure: Held
