CPTMatt RE DNI I understand that thinking. I've explained my position as to that issue here. We all have our risk reward ratio that we are comfortable with. More DD helps to put things into perspective and allows me to sleep with zero worries. For me, the risk stands like a 15% chance that DNI would pay out 500k or less. I can live with that since I know the current value of DNI is many times over current price and we got 100% instead of 5o% of the 1st projest. FV is many times over that. Its def not as derisked as GORO but the reward is coming faster and harder.
The contract was solid. Cougar had about 90 days to drill 3000 meters in the saprolite, plus get the resource completed. They took 271 days to drill 1700m, no res, with 2 extensions and finally got booted. Its a world class resource and 50% was being handed to them for the timely drilling. First the contract says it cant be arbitrated if they default. Cougar defaulted on time and money. If they could get somebody to listen, what would you say as judge, when you here CGM sent one subpar drill, one driller and no mgt?
If you were Cougar CEO and things were going bad on your project, wouldnt you hop on a plane to see for yourself or at least send more equipment or employees? Make public noise in the filing minutes? How do you get past those 2 points?
Also Cougar has a history of lawsuits and problems, you think someone with that history might fabricate some? Its possible
DNI choosing them bad idea? Maybe, but not a lot of options for start up companies. You take the best deal and run with it. DNI was brilliant to tie them up so tight in the contract. Moriarty said it was the best contract hed ever seen. And looking back as an investor, I say they got it done didnt they? Your right, there is that small speed bump to get past and that would be in the cons pile
CM28
