11-04-2015, 09:00 AM
A couple of hours ago, nearly 6% of AXG was traded on the TSX, 630,000 shares from a total of over 10mill, at C 2.5c, valuing the company at C$264,000 odd.
Doesn't look like the market is too impressed with the deal being discussed.
18-04-2015, 08:58 PM
Aorere Resources has a page showing the press releases from CRP, AOR and AXG around 1st April.
There have not been any great changes in the share prices of these companies, well not upwards, anyway, since. I like to read between the lines a bit, this is a new habit that I've picked up after having been delivered a few lessons.
AOR will need to hand over $200,000 in cash, which they'll come up with by selling one or more assets. Then they'll also provide $800,000 "worth" of AOR shares to AXG, for the GENZL company assets. I'm fairly sure AXG owes quite a bit more than $200k at the moment, which means they'll sell these shares on market to realise cash, or they'll try and palm off most of the shares in lieu of payment. The last time someone exchanged GEL shares for debts over on the TSX, it caused a major crash in the price. Since AOR is only worth just north of $1.2mill on paper at the moment, guess what will happen to the shareprice. This could all happen around about August 2015, if all goes as they want it to.
It seems to me that all this is being driven by both Simon Henderson and Chris Castle being prepared to take a punt that the Waihi West permit will contain mineable gold, or it being the most likely positive result from all of the current AOR investments. As long as neither of them have to stump up any real initial cash, of course.
It will be the investors in AOR who will need to handle the share dilution and capital raising afterwards, if they have to pay for 40% of the drilling costs, assuming that goes ahead. There was no market frenzy from the Correnso find nearby a few short years ago, as that was all quietly contained within Newmont's offices. They could probably run a few news releases over drilling in Waihi West, or as much as Newmont lets them do.
But this all seems a lot of mucking about, when Newmont could just take over the whole permit and WKP for a sensible amount, let AXG sort out its horrible debts, and then maybe AXG could help CRP with a reverse takeover, only this time AXG would have a bit more of an interest in the final concern.
Note: this leaves AOR out of the picture. But as Chris Castle said, this whole deal is being set up to help CRP. Yeah right.
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