It is a pity the way this has eventuated and I will admit, my optimism regarding James was misplaced and that your assessment was correct.
I bought into the vision for the Mt Ida gold belt and the enormous potential (Hartleys report, 1moz, etc). The difference though, is that you actually worked the area and know the potential first hand!
Unfortunately, if you have management that isn't motivated and possibly out of depth, proceeding with the project can go pear shaped, very quickly. The asset can then be gobbled up for a pittance and we'll be left with zilch. That possibility is reinforced with the CN (122m shares) that leaves Aurenne group in a very powerful position.
There is no logic to issuing the 3.6m convertible note apart from the assessment that the management want the deal to proceed. They've now given Aurenne the firepower to assure it proceeds, whether friendly or hostile (in the sense that we are diluted to oblivion).
The final payment of 4.5m for Bottle Creek was due in November (nearly 7 months away), the $500k July payment is due 2 months away. What is the urgency for issuing the CN? Why before the PFS and maiden ore reserve statement? (both events that would have driven the SP up organically). What happened to bridging financing? (easy to attain with a good PFS/Ore statement (asset)).
As the old adage goes, A Bird in the Hand is Worth Two in the Bush.
In that sense, it would be foolish to resist a management that clearly wants a deal completed and is assisting the entity attempting the take over.
We may get a slightly better offer, the possibility always exists. The independent report (valuation) will shed light on that. However to those intent on resisting to the bitter end, consider that you have a management keen on the deal and willing to provide Aurenne with the ammunition required to achieve it. (proverbially)
