A point-form summary of Big Al’s interview of Gary Cope at the San Francisco Hard Asset Conference in mid November. This interview was posted here weeks ago.
- Big Al has 20,000 to 25,000 Orko shares.
- PAS got themselves in a deadline problem to deliver feasibility study last April due to circumstances within their own company
- PAS purchased Minefinders a few weeks before deadline, negatively affecting SP
- PAS management wanted to take out OK but BofD said no; because PAS wanted to give the project back there must be something wrong with the project
- OK has 8 Confidential agreements (CA) signed with standstill agreements – no hostile takeout can occur; final negotiations with 2-3 of these companies that are very interested in acquiring the project
- New Resource Estimate 264 M oz; mineable oz increased from old PEA of 83 M oz to 240 M oz, tripling the amount of mineable oz
- AMEC PEA should be ready by February, optimizing the mine plan
- One of the largest primary undeveloped silver projects in the world
- Overall CA opinion of the project is tremendous, one CA said La Preciosa is the best site they’d ever seen for an open pit mine
- Orko won’t be around for a year the way the negotiations are going, we coming to a fairly rapid close for the sale of Orko, that’s assuming we get a price we’re happy with, by terms of contract won’t be any hostile takeover
- If no agreement shortly, Orko will take the deposit to PFS
- Currently a small study being performed by Ben Whiting 15 km away from the known resource
- AMEC finishing off PEA; $11.5 million in the bank enough to take OK to PEA; raising more money dependent upon PEA, but it looks like Orko’s days are coming to an end shortly
My opinion: the market’s interpretation of PAS walking away from this project continues to adversely-affect the share price. PAS bit off more than they could chew with their acquisition of Minefinders while their share price more than halved. PAS dragged its feet while conducting the Orko PEA in order to minimize the take out price, leaving OK shareholders holding the bag.
Investing in the Vulture Exchange is not for the faint-of-heart…BUT, holding OK shares long is about to pay off BIG by February, if not before. An imminent buyout is a given.