OK , where are we at ?? sky falling in, hostile...

OK , where are we at ??

sky falling in, hostile takeover/takeunder talk, major shareholders buying, major retail capitulation, rumours of bids, share price reflecting 1960's gold price ...lol. ....we got the lot here boys !!


One thing is for sure , peripheral "punter sentiment" on the stock forums will have little long term impact on this company. The big end of town will take it from here....they always do..

We can talk about amx till we are blue in the face ( Yes , I do, I find it cathartic !) and you can even buy and sell your morsels of stocks, but If you don't have a few million to sell or buy at this point, you have zero market impact.

Now this is the interesting part chaps.....

I was digging through a few saved articles , back from my Andean resource days.

All I can say is - HAVE A GOOD HARD READ ! - The way Amx is playing out , is a road i have travelled more than once.

Read the article , and gain some perspective gents : Keep in mind also that the POG was hundreds of dollars lower than today when this was written.

(* I added a few notes for yas)

Enjoy....

Andean resists takeover bid
By Jamie Freed
March 30, 2006

IN WHAT'S shaping up to be an unusual takeover battle, independent directors of gold explorer Andean Resources officially recommended that shareholders reject a hostile $113 million scrip bid from Kingsgate Consolidated yesterday.

Andean director Gavin Thomas has been forced to step aside from the fight because he also serves as the chief executive of Kingsgate, although he is not a Kingsgate director.

Andean is completing a drilling program to give it an official gold resource, but it believes its Cerro Negro deposit in Argentina contains at least 700,000 ounces with the potential for a lot more. (* a bid with only 700k/oz valued at $100mill+ ...hmmm)

Andean chairman Warren Gilmour said the Kingsgate bid was opportunistic (*like whats coming for amx), because his company could attract a much higher bid once its deposit had a certified resource compliant with Joint Ore Reserves Committee standards. He added that major US gold companies were interested in the Cerro Negro project (*sound familiar?).

"There have been approaches made to us by large North American companies," (sound familiar amx punters ?) Mr Gilmour said. "They see the possibility of blue-sky value to the project." (sound familar yet?? ie. large unexplored land package...hmm ?)

Kingsgate chairman Ross Smyth-Kirk countered that a bid for Andean from the likes of Newmont Mining or Barrick Gold was unlikely because its deposit was too small. "They've been trying to find (a rival bid). I'm pretty certain they won't find anybody," he said. "Talk is very cheap." (hmm, sounds like semafo "talking cheap" also)

Mr Gilmour said Andean shareholders should be uncomfortable accepting Kingsgate shares instead of cash due to the political risk associated with Kingsgate's Chatree mine in Thailand.

Mr Smyth-Kirk said Argentina was a similarly risky operating environment and added Kingsgate's scrip offer would benefit shareholders of both companies by spreading the risk. "Having all your eggs in one basket is not a very wise investment," he said.

Since Kingsgate announced its offer last month, its shares have risen 9 per cent. Andean shares have risen 41 per cent during the same period.

Kingsgate shares closed 1¢ higher at a record $6.25 yesterday, while Andean shares closed 1¢ lower at 42¢. (* andean shares went on to be worth over $7 ..lol)

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Capiche?