Mainland Resources, Inc.(fka MNLU)

[Ecomike]

Well didn't somebody mention that the door had closed for private share auctions which could imply that they might be in negotiations with a a JV to finally make the merger happen and get the work started. Hopefully theyll drop a PR later and enlighten us on whats going on.

Yes one of our group here called Mike Parker, the IR guy, and reported to us that the offer had been pulled.

The part that has me really confused is this (and I'm hoping someone more knowledgable maybe able to enlighten me on this), if I had 50 million in cash buried in the ground, and the cost to have it dug up was 10 million, I don't think I would have any problems getting financing for giving up a piece of the action. So why is MNLU having so much trouble when all they have to do is point to the millions of dollars down there?

MNLU is and has been trying get to get cheap money, and with the summer market panic sell off, Japan Earthquake, Miss flooding (which only dried up enough to make the well accesable about 8 weeks ago), Europe-Greece-Spain-Ireland- never ending bail out financial crisis in Europe making investors nervous of another great depresion, and the markets nervous that the FED might tighten money supply this summer, and on and on, cheap money has been scarce, and MNLU has tried to not dilute, tried to borrow the money, but Guggenheim can only loan against proven reserves, which MLNU will not have until the well is fracked, and flow tested.

Just curious, once/if the merger happens, and the shares are exchanged etc etc, will they most likely make ppl start jumping on board and driving up the price of the stock?

IMHO the AEXP merger is a side show, and peak prices will be reached when the well is completed, fracked and connected to production. I expect the merger to be delayed until the well is producing cash, unless there is an outright buy out of both companies before the merger is completed, or before the well is completed.