Must read! Bigger companies do make buyout offers all the time to smaller ones based on historical records because they can buy for cheap. Don't listen to b402 and his partner trying to cast doubts.
The reason they can buy for cheap is because they argue they take a bigger risk with those older, estimated numbers, even though they know there's gold in the ground. Otherwise they wouldn't make a buyout offer.
I know because I own stock in a small gold company that was offered a buyout based on test results 15 years ago. The company declined the offer and is completing a drill program to update the numbers. Because it's more extended and comprehensive, the company expects better results than the previous tests. Based on the new, improved results, the company expects a better and more fair offer.
So yes, it's no surprise that saie said in Oct. that it received numerous buyout offers. Why? Because the big companies know there's gold in the ground and that an offer before this NI report could be made much more cheaply. Now with this NI report, that has changed. And it will even be harder to buyout saei for cheap after the new drill results in first quarter 2011 because the numbers will be much more firm.
That's why this NI report is important. It adds credibility and firmer numbers not just for us to see, but more important for the prospective buyers to see. Then, in the first quarter of 2011 when the new drill results come in, those results will much further confirm and establish and add to the numbers that we saw today.
In other words, saei management is not stupid. They're doing exactly what is industry standard procedure. And they're doing it to maximize profitability should they want to sell the company instead of becoming a gold production company.
Obviously, should saei start producing gold, then the buyout offer will have to be even higher.
So, don't be led astray by wolves in sheep skin.
This NI report is very important and shows that the B & V mines are indeed major and world class.
