An interesting rumor coming out of the PDAC. I just re-uploaded the conversation again.
Click download link to listen on this device: Download Show
One of our regular listeners who attended the PDAC brought this to my attention. He agree to come on our show and discuss it. I also got clearance from Premium Exploration. Definitely, do not take this as investment advice because it is not!AnInterestingRumor
I reloaded the conversation I had with James. You should now be able to listen.
You will be hearing more soon.
James
Morning James,
I appreciate your telephone call alerting me of this situation and I appreciate your giving me permission to put together a Daily Editorial on this subject.
I did speak with Del Steiner after I spoke with you and also received his permission to air this.
Thanks again,
Big Al
Hi Al glad I could help out all PEM shareholders on your show.We do have a good project.With Targets as high as $1.70 investors will make out like bandits buying stock in PEM at these levels.I would very much like to see a combination of PEM into Midas if we could get some Midas paper.I guess we shall see were there is smoke there is Fire.
James
I, too, attended the PDAC2012 and saw both Premium and Midas. I left with the very strong impression that Midas is seriously investigating PEM as a target. They know a great deal about PEM’s assets and they now have the funds to exploit them. PEM is close to Midas territory and is asset rich but cash poor and Midas didn’t appear to be ignorant of those facts nor the potential. They know the value.
Big Al,
Please redo this when the audio is working.
I have a lot of Premium and I am hungry for good news!
Thanks!
Allen
Hi Allen,
The audio has been working on this end since I put it up yesterday.
Not sure what your situation is.
Best,
Big Al
Whats the news? No link to download. Please tell Del to start producing some of them their gold in the hills!!
HI Cliff,
The audio starts automatically, There is no link involved.
Best,
Big Al
As a matter of track record I have been positioned and in some cases help germinate take overs of these companies in my investing in public companies.Of this list only one take over has yet to happen yet.I make my investments in only 2 or three companies at a time and only when the stock price is groosly under valued by the market place in a company that has a clear advantage over its rivals so much so it (the target) becomes a must have to it larger rivals.My investment style is only take overs or mergers.
taken over:
Arequipia Resources
Argentina Gold
Ashton Diamonds
Winspear Diamonds
Western Oil Sands
Black Rock Ventures
Deer Creek Energy
Synenco Energy
Peru Copper
Aruielin Res
Ventana
As we know those were taken over
Mountain Province Diamonds was not yet but I think Harry Winston or Debeers Canada will take it out before the start of the Gaucho Qua’ Diamond mine begins production.
I do have two more prime take over targets that are Two top priorties were they have moved from the back office of their rivals to the front office and likely near term targets. My number 1 pick is Premium Exploration and number 2 is Newstrike Capital.Premium is already in play in my view making it number 1.While Newstrik is number 2
James Flannigan
Thanks James,
Big Al
big al whats the story on pem and midas and when will you elaborate on it?
Hello readers,
I don’t know for sure but I think Mr. Flannigan’s post above is our cue. He was at PDAC and is a regular listener. I think that is our info source.
Hi Shep,
The audio, which elaborates on everything that I know, starts automatically when you go to this particular Daily Editorial.
Please try again and let me know what happens.
Big Al
Posted by on May 15, 2012 at 6:55 pm Donna, It’s always fun to come to your blog. You’re ineiserttng and ENGAGING!I find it ineiserttng that you have an actual schedule for going by your social media sites. Keeps you pinned to the computer. I am hesitant to get a smart phone for that very reason. Heaven forbid that I’d be out of touch for a meal. LOL! Thanks for your great insights and loads of info. In Clarity and Success, RICKRick Lelchuk recently posted..
oops. Sorry folks. I stated the obvious. Just saw his earlier post where he was alerting us.
There is no question in my mind.Midas made 3 site visits to the PEM property.Is now filled to the booots with cash.And I know for a fact that large shareholdrers of Midas are pushing for a PEM takeover.It has been in the front office of Midas and they know just what they will do in terms of exploration.They told me they have the money and “intend to spend it” keep your PEM stock we may buy it” theses are their words from the top management at Midas.For the record I have been buying PEM shares post the $40 million capital raise by Midas based on gut feel they are targeting PEM.I can tell you I have confirmed their interest in PEM.We never can say with a 100% a deal is going to happen until after its a fact.For many investors thats too late.PEM has a land package that most other JRs can only dream of.Midas would have a near monoply of future gold production in the state of Idaho.How would Newmont or Barrick view a state monopoly on the Gold business in Idaho?
This is not lost on Midas or PEM that this little JR could in short order combine to form a 20 million oz JR if Midas could move 8 drill rigs on the PEM Firday deposit.
I suspect that Del Stiener would be very much in suppot of a combination at a reasonable price.
Midas would be a one of a kind (ther are not many 20 million oz JRs out there)
James
Hey Big Al,
A little off the subject, but on similar vein, can you get Cope/McCoach on discussing the impending PAN AM and Orko JV/ merger – its getting close to the drop dead date for the April 12th – PA has to get their stuff together and come up with the goods, per se. Can you have him on for elaborations? I am banking on this pretty good – might be others in a similar position. We might be looking at between a 4 or 5 spot for the stock after this deal gets done?
All the best,
Marc
PS – I was very impressed with Craig at OTIS when I met him at CRIC.
COME ON CASTING..HERO…..KEEP UP
BTW,
ORKO is up 15% today, that’s .32 a share as I glance at my watch 12:50 PM PST. Most other shares are not faring well – I wonder what’s up if anything.
Marc
ORKO IS STICKING OUT LIKE A SORE (GOOD) THUMB 🙂
We know Premium well and support their ideas. I am meeting with them next week in Canada. more to come in Trader Tracks Newsletter. – Traderrog
I am new to this industry, but when I see a bunch of know nothings on TV leave there lives behind and head to Alaska, plot some general surveys down on scratch paper, set up a wash plant and hire a few helping hands, why can’t premium do this as well? Just put up a wash plant and start open pit mining the heck out a small block of land. Piping electricity and water is easy. Can someone please elaborate on this thought for me please?
Clifton, you should know the answer! Dell is too busy printing stock certificates.
Great interview
So basily they want to buy Premium, run Del off and get somebody in there that has a clue how to run a company and increase shareholder value.
Hi Meritmat,
I guess everyone is entitled to their own opinion.
Big Al
With respect, I think the share price speaks more to fact than opinion. I am willing to have management prove me wrong and I will be the first in line to say it if I am.
Interesting point gentlemen,
I can only attest to Del’s integrity and I can say that he has plenty of that.
Not much we can do at this point. Just see how this plays out.
Best,
Big Al
James, have you taken a look at AM Gold? They are just about THE cheapest gold junior in the entire market and their current resource is being valued at something approaching $4 per ounce in the ground while their key property is open in all directions and could host a 5 million ounce deposit. In the history of gold mining, thats almost unparalled.
I can’t speak for James, but I definitely will.
Big Al
Hi Clifton, Meritmat and all,
I will have some hard numbers for you regarding Del’s “printing stock certificates”.
I will personally check this out.
Big Al
Hello Big Al. Nothing against Del as I am sure he is a good guy. I am dumb when it comes to stock issues too. But if they need money, tell them to put the drills away, bust out the big boy toys and start digging where they discovered the most grams per ton! Four/five months and 2-3 million in up front investing and they can begin to pull gold out the ground! Thats what banks and shareholders want to see at this point. They have raised enough money proving the oz are there. Once the banks see the gold disappearing out of the ground, they will chomp hard to get that p.h.y.s.i.c.a.l! Sell the physical for small operating cost and to bust the drills back out. Del is just scared to invest the money on the front end because of a black swan event that could cause gold to collapse temporary due to wild volatility. Just my opinion. Thanks for the blog. Really enjoy it with my coffee on Saturday mornings!
I have to say this is one of the saddest stories I have come across (who knows–perhaps it has a happy ending..? a hostile takeover completed in the 20-30 cent range would not qualify as such in my books..)
I agree with the Midas geologist that PEM is basically a sitting (dead?) duck as they are totally underfinanced, and need 7+ drill rigs operating on that property to prove up a significant resource. The reason I say this is such a sad story is because this stock spent a fair bit of time above 50 cents— a highly dilutive financing, say 100M shares for $50M, could have accomplished the goal of getting 9 drill rigs or so on that property for a few yrs to prove up potentially 5M ounces or more. Instead the stock falls off a cliff, and *then* they issue 50M shares at 15 cents. This is the worst of both worlds— a highly dilutive financing, *and* only $7.5M raised.
What most confuses me is how Del, a large shareholder, thought this was a good idea—“we don’t want to raise money at 60 cents, but now that the stock is down to 15, let’s do it”. a small raise, say 10-20M shares at 60 cents or so for $10M was a total no-brainer. That would have prevented the downward spiral in the shares from *accelerating* (when the market saw they were running low on cash, the sharks circled…or should I say dumped their shares aggressively knowing the company was running out of money and would have trouble raising any in a weak market), and perhaps by the now the stock would already be back above 30-40 cents with the recovery in the sector.
Personally I am looking for a bounce (whether by takeover or not) back in the 20s, maybe up to 30, and then I’m gone; at this point, just hoping a takeover/talks creates a stir and really gets things moving.
I think the “highly dilutive” math here is pretty straightforward… 130M shares pre-financing. 50M shares being issued plus another 25M warrants in the financing. at pennies on the dollar. sad, very sad.
Hi skii,
Your first point is very well taken and I agree. Unfortunately hind sight is always 20 – 20.
The financing you are referring to is highly dillutive. No question about that. If; however, with the $7.5m from the proposed financing in fact Premium could prove up some significant ounces it would be a different story.
This truly is a tough situation at this point.
Let’s see what kind of leader Del is.
Big Al
Sadly this company died when Wilf passed on. RIP Wilf
To ALL my interview today takes notihng away from Del Steiner.He knows how to find gold.I could be so lucky to have him run PEM.I He is first rate
James
Thanks James,
I agree.
Big Al
BTW Al that steak house you were talking about just over the Canadian border is likely Petes Market or across the street Club Joey both are from the 70s and both are still there.I rember being line up around the street corner to get a table at Club Joey in the 70s and 80s.They used to play Sinatra until late in the morning,The beers were a $1 and the steak dinner was $2.95. As Archie Bunker says those were the days.
To all who question Del and his ability to run PEM I ask How many men could you line up that pokes a few dozen holes in the mud in the middle of no where and comes up with a 1+ million oz of gold?I can tell you that its a very short line indeed.If the share price recovers at some point we will all be dancing in the streets and sending cases of Canadian Club to Del and thanking Dundee for the 15 cent shares.At least I will. I get happy when Walmart has a 4 for 1 sale.I fail to understand when Wallstreetmart has a 4 for 1 sale people get angry.Psst I have a loaf of bread 1 for $4 or 4 for $4 what would you like?
James
How does that song go?
If you got the money honey I got the time:
Midas Gold Corp
Symbol C : MAX
Shares Issued 105,281,936
Close 2012-03-12 C$ 3.87
Recent Sedar Documents
Midas receives 9.08-million-share prospectus receipt
2012-03-13 08:19 ET – News Release
Mr. Stephen Quin reports
MIDAS GOLD RECEIVES RECEIPT FOR PROSPECTUS AND QUALIFIES EXERCISE OF SPECIAL WARRANTS
Midas Gold Corp. has received a receipt for its final short form prospectus which qualifies the distribution, in the provinces of British Columbia, Alberta, Ontario and New Brunswick, of 9,085,000 common shares of Midas Gold on the deemed exercise of 9,085,000 special warrants which will occur effective March 14, 2012. The company previously announced the closing of this private placement financing of special warrants on Feb. 14, 2012, and the deemed exercise of the special warrants does not result in any additional payments to Midas Gold or the issuance of any additional common shares beyond the issue of one common share of Midas Gold for each special warrant.
James/Al
please please explain how you can still honestly say that this is a “first rate” mgmt team. Personal feelings/relationships aside—
1.massive dilution at the bottom of the mkt after failing to do even a small equity raise at significantly higher prices — to me this is simply inexcusable given that you *know* you will be running out of money at the end of the year
2. In such a land package there are clearly other/better options to this kind of dilution—JV on all/part of it, sell part of it etc.
3. what happened to “2011 is going to be an exciting yr for PEM shareholders”–where are/were the results? I haven’t seen any for many many months.
Another comment here–I am trying to be as objective as possible here–as in, my remarks are not *because* the s/p tanked, but rather the poor decisions that *caused* the s/p to tank.
James, you are celebrating this potential takeover as though it is a good thing. I do not think it is at all.
For you perhaps it is a good thing as it sounds like you have been accumulating aggressively at these levels, but a hostile bid that goes through around 25 cents would be a disaster for any long term holder of this company.
Again, poor mgmt has led to such a share structure that will be quite amenable to a hostile takeover–that is to say, the share structure is so ‘loose’ that Midas should have no trouble acquiring control of this company below 30 cents (certainly below 40) if they so choose.
Keep in mind that Industrial Alliance was buying the crap out of PEM in the 40s as did other large funds such as FrazerMcKenzie.Now if large funds are telling Midas to bid and those same funds bought PEM at three times todays price then I do not think a 25 or 30 cent bid will succeed.No one here is selling PEM at a profit at thses levels Ned Goodmand owns 18 million PEM shares.I could be wrong but I think he does not buy high and sell low as a matter of his investment style.I also conclude IA and FM would rather avoid the buy high sell low crowd as well.But we shall see.
James
The only way I could see this pushing much above 40 would be if multiple buyers entered and this turned into a bidding war. Anyone else lined up here besides Midas?
That’s the new theme in these markets—buy quality assets at $x expecting $2x or $5x over the coming years as the business plan gets executed. Then watch the market discount them to $x/4, only to have a big player move in and swallow the whole thing for $x/2.
James you might know better than me, but I do not think enough of these shares are in “strong hands”, like the ones you mentioned above, to maintain control of this company.
Well your are righ everything is for sale at a price.
Check out SSP, Similar low-grade deposit in Guyana but with 8-10 Mill proved up. Not long ago SP was over $3. No financing was done. SP drifted down. Now there is a PP at 1.08. If Del is a dope, he ain’t the only one. Of course, both cases are infuriating to a shareholder.
Careful on ssp—best of my understanding, this project is located in the middle of the bush. minimal/no infrastructure, very tough conditions to mine in–low grade as you mentioned. on the “going to be a mine eventually” scale, this one ranks pretty low.
PEM’s land package in contrast is full of placer workings–looks like it could easily be a (an economic) mine with the funding
I agree with the negatives you site. I wasn’t recommending SSP, only giving a somewhat similar example of failure to raise money when the raising was good.
Jason, the team at SSP is top notch. I actuallly have shares in the $1.30 level.
RBC coerced them into doing a financing at 1.08… that’s why the SP didn’t pop on the last resource estimate.. they wanted the SP as low as possible!!!
Hi Sakalli,1. The new place looks great, very promissing.2. Thanks a lot for this new addndeum to the Renaissance collection that I like a lot.3. Hopefully a pieceful period will follow this new beginning. Again: live long and prosper!Sincerely yours,Thalamus
I’m curious to hear this….