Firstly let me say that Yellowman just swings with the wind. A...

Firstly let me say that Yellowman just swings with the wind. A little while ago he was saying that GPN are not explorers or potential producers, they ar deal-makers, so lets leave it at that.

Here's some facts.

GPN wanted to do a spin-off of U assets. Their initial plan was to own 40% of the new spin-off YRR. This did not go through, so GPN tried again, this time attaining almost 70% of the successful float. At the time they claimed they were spinning it off as they wanted to concentrate on their gold assets. A few weeks later they announce new U deals, making me question why they bothered to spin off their uranium holdings in the first place. Then YRR announce they are taking up their extra right to increase holdings to 51% (how much is that costing them by the way). Then we get a takeover offer for the remaining 49%. Interestingly the remaining 49% is currently owned by a company called Grand Enterprises, of which the director and secretary of Uranium Australia is none other than Dean Scook. Grand Enterprises are also major shareholders in GPN. So we have Grand Enterprises basically buying some of their own ownership back. Wow. On top of this all 4 companies live at the same address.

Now back to the takeover offer. YRR is offering 39mill shares AND 39mill options, or around $28mill for two U tenements which have hardly been explored (admitted in their own report). They are committing to spend around $250K on each over 2 years (as per their prospectus). The offer will be put to the shareholders, which of course will be passed as GPN own 70% of YRR (how convenient that change of plan from 40% was). Now for the best bit, if this deal goes through, then shares get diluted by 40% straight off. If all options get exercised this will add another 76mill shares all up. At the end of this, of approximately 156mill shares, 78mill, or half will be owned by the old Uranium Australia shareholders, who is predominantly, Dean Scook, and around 60mill by GPN (and who knows which of the top 20 in Top 20 indirectly have Dean Scook's interests via the web of companies he is involved in (K that part is speculation).

Out of interest I researched Dean Scook's other directorship interests. Can you believe he has been on the board of no less than 30 companies, of which 25 have since been deregistered or are currently in external administration.

It seems that all the dealings going on are for the benefit of one person. Two U tenenments in Northern Territory which have had very little exploration and have difficult environments for exploration. The owners of this will have turned their marginal current value to a value of almost $20mill if YRR remains at its current price. No wonder all those other directorships are being deregistered. Has found the pot of gold (or uranium more aptly).

The vanadium deposit that is potentially going to be unviable by the time it is ready to be developed (as consensus is that Vanadium prices will plummet to the low levels it was a few years ago by 2010).

U deposits drilling program very modest over the next two years.

GPN gold deposit being very anomolous (what does this actually mean) but no hole results given for thes highly anomolous results even though they were promised at end of December.

Montezuma committing to only 500K worth of exploration of U tenements over 3 years. Has just received attention from the ASIC watchdog.

Aurium. I still dont understand this joint venture. Aurion are going to commit first $1.2mill of the expenditure and first mill of development of mine if economical. So why a joint venture? Why not just source what amounts to $2.2mill through a placement? I thought the gold tenement was highly anomolous, why give up 50% of your asset for a mere $2.2mill plus half of rest of exploration.

This is the irony of it all. GPN (through YRR) buy two prospective but poorly explored U tenements for $28mill, then give up half of their gold tenement for $2.2mill+

Are investors best interests at heart?