Replies to post #2752 on Explor Resources Inc. (fka EXSFF)

[CDLGold]

tomberry,
Based on posts,over the last 2 days,we may need to give it more time.If nothing happens by the end of the year(but I think
it will,between the N43-101,due by the end of November,and the
signed agreement)you can call CD on his cell,for any questions.
If I copied it right from the CC,his cell is:[phone].I
wouldn't want to nag him and try to make him tap-dance,but I
may try calling him or e-mailing "[e-mail]" to
find out more detail about how the CA works.The post we just got today from another board member makes sense of why it is taking this long however.JMO.With gold going up like it has,at $1700/oz.,
when I checked a few minutes ago, I don't think the major would be playing around.I ran a mail order business full time during part of the 90's,and from the business sense I bring to the table,
I would be very serious in negotiating,the way gold looks like it is headed.If I was a major,I would do everything I could to close a fair deal for me without trying to be too greedy and give the
other company the short end of the stick,resulting in a possible
stalemate.The conference call,which you can still replay explains
a little of this.Both Cd and the major look like they are too
smart to try to be too greedy and give the other party the short end,and too smart to end up in a stalemate from this perspective.
CDLGold

[Gmoney2]

I would think that:

a) full treasury (post PP's),
b) 43-101 and
c) the time a full treasury buys allowing continued drilling and adding to the proven reserves indicated by the 43-101 once it comes out

are the ingredients required for CD to go after maximum value -

Without each of those three items he is not dealing from a position of strength.

It makes sense to me (logically) that nothing will come out of the CA until those three items are in place. I have no specific investing knowledge to support this so it is just my opinion.

I also suspect CD will want to continue to drill and add to reserves for "as long as it takes" before settling for an early offer that many of us are longing for.

Time appears to be our friend assuming the latest PP closes successfully. This reaffirms what the more knowledgeable folks on this board have been sharing with folks like me, that this play will require patience even post 43-101. JMO FWIW

[luvtohunt]

CDLGold,

It is a very delicate environment once inside and so far down the road with one suitor under CA. You want to extract the best deal while at the same time not becoming so confrontational or stubborn such that you alienate your potentially new partner.

Direct threat of competition is not required for leverage in the negotiations, AEM is fully aware of the potential for other suitors to come along with an offer. The biggest threat to AEM in taking so long to come to terms on a good deal is EXS marching on to grow the positive results in their drill programs. As EXS announces good results, (todate they have reported consistent hits and decent grades that are endorsed as feasible for mine production). As more of these events occur, theoretically the higher the value of the deal becomes and the more potential partners are attracted.

If I were in CD's position my attitude would be one of complete cooperation and an almost cavalier attitude towards the time they are taking. The luxury of this attitude is precipitated by the availability of funds to continue to drill, prove the model, and complete N43-101.

So yes, I believe there was some sense of urgency to get the PP to continue the drill programs. Now that they have cash, they are in a much stronger position to negotiate. I don't believe it was a desperate situation but certainly a smart move even though we shareholders only see it as dilution.

The CA may include a clause to prevent EXS from talking to anyone else until they collectively make a decision. Usually that would come with a time limit. Typically this would be a hard date but both sides able to move the date with mutual agreement. I don't believe CD will let this time carry on unless he feels there is good reason. More good drill results, respectable N43-101 report, price of gold increasing all work to CD's favor so I believe delay is not as big a deal to him as it is painful to shareholders to sit in the dark and hold our breath.

JMHO
LTH