mad monday, page-18

You can't have it both ways newregime, it's either
"low market cap, easy take over" or it's "10c". I've previously explained why BRU at least wouldn't be paying anything much more than 4c+ really, 5c tops.

Of course I think they're interested in the assets, they're trying to buy them. To me it's more about how much to pay for what OBL's interest ends up being *IF* their current plan with Backreef (or a close enough approximation thereof) doesn't move ahead. I don't think anything serious would happen until after legals get some way along and then I don't think BRU will really be involved... Not with cash at any rate. They seem to have their plate full after this round of financing, and really if they were thinking along these lines why would they only do a 5M SPP? Why not put more up to finance something like this? It doesn't give me a lot of confidence in this scenario at all.

Also in regards to being 40 times "cheaper", a bike is 40 times cheaper than a car based purely on price. You have to look at what they have. BRU have a much, much larger and more profitable suite of prospects, not to mention producing assets. You can't easily compare them by mkt cap. And even if you did there are blue sky valuations of $70+ for BRU from respected figures, not that it would ever be left to see that value created without being taken over of course. Given bags depend on potential value and Buru has far more potential value, even with the extra market cap there is plenty of scope for multibaggers all around. Although of course on individual shared items OBL would indeed provide more leverage, ie if BRU's purchase of Backreef goes ahead in some form, then a successful well in 2015 would do more for OBL's SP than BRU's. I'd probably say commercial proof of the Laurel if it goes well next year might do more for OBL too although it depends on many things.. It's a bit more of a line ball.

Anyways. lots and lots of speculation when what we really need is facts. Once we know whether Derby is going ahead, once we know how the legals go and what % OBL end up with we'll be in a better position to look at the best way forward. We shouldn't really be talking takeovers when management is looking for Chinese investors.