The biggest problem is that managment have very few shares of the company in comparison to some of the individual shareholders... This means that the shareholders value creation takes a second place to funding the company..... JMHO
The shareholders are the owners of all of the assets of WEL... therefore any deal which dividends out alternate value to the shareholders is in fact return of capital.... divy ... or alternate investment. The value to the sharholders is obvious as holding some SKP instead of WEL paper reduces risk and increases potential for success. In that case WEL as a company ( and our Managment) would see a divey of SKP stock to shareholders as loss of value to WELL proper. Our managment would simply want to sell those shares and use the funds to advance the remaining assets rather than divy out shares.
There is always a problem when managment do not own enough paper as dilution is of little to no concern, and only a means to an end.... funding the operations of the compay. When managment are compensated via increase in share value because they orn significant paper, then all paries have a common goal and intrest.
When managment own significant paper the thinking is more toward investor value creation.... Personally I don't care if there would be a WEL left if SKP was to make a move on WEL. For SKP it would simply be a means to advancing control over more of the Bisset golden fairway. If that can be done with less dilution than their existing commitment, and a significant increase in land is accomplished, then it would be prudent for SKP to make a move on WEL. Less dilutive to have control of the whole than continue to dilute to achive a partial control on only the Poundmaker.
Sort of like going to buy a new truck and finding out you could buy the whole dealers inventory for less than the cost of the single truck.....LOL
These relative market valuations could allow this to happen.... WEL managment does not need to approve any deal.... the shareholders do!
Does SKP want too.... don't know.... but they still have a commitment to the Poundmaker deal... and thus have expessed their intention that land mass is important.
Now if WEL has success when they start the Horseshoe lake exploration, then SKP or anyone else would have to pay a lot more as our valueation would increase dramaticly...For now we appeer to be in limbo.
Have a great day!
