follow up announcements?, page-33

re: <----------------next gtm lol ;) The popular internet chatsite theory is, the site is going so cheap because the vendors are planning a reverse takeover of some sort of RRS. Accordingly this is why they've accepted mainly shares and options instead of cash.

IMHO there are a few flaws in this theory, such as, why the vendors would pick a relatively expensive "shell" as a takeover target, (they would make much more money by doing a similar deal with a company with market caps of say 3m) , why they would pick a stock with a reputation marred by scandal in the past (they will need to raise bucketloads of cash and prospective mining financiers will not respond as well to the RRS name), why they are doing a JV with current RRS shareholders on such generous terms (face it if this deposit is as valuable as it appears on the surface they could get better terms elsewhere - rather than enrich RRS shareholders pockets at the expense of their own), and lastly not remembering when such an instance has occurred, where vendor sells company an asset then proceeds to take some of it back from within. Not discounting this to be possible but this looks like a long shot, as long as it gets in fact.

My own opinion is the deposit was probably deeply flawed in some way and the vendors were just waiting for an unsuspecting buyer to pounce. To get paid at all for a worthless deposit is already a great outcome, so additional equity would be irrelevant. We don't know if it it worthless, but we don't know if it's worth anything either until much more work is done on it. There are simply too many "prospectus mines" around waiting to catch the unsuspecting punter, as past history has shown.