Ann: Change in substantial holding-ALY.AX, page-8

pfuzzy

It's better to be active rather than idle for ALY. It had been investigating with patience to find the right venture for itself; taking many, many months to find not only one but two of course in the process. I like both new ventures. Kevin Cassidy knew what he was after!

Until these acquisitions, all ALY had being the junior silent partner with NST re gold and IGO re base metals. I have no qualms about those farm-outs and the terms, but the problem for a minor party in a farm-out is that it has no say in what happens and can be starved of information too.

ALY has 2 quite big partners. What may be a non-material piece of news for NST or IGO may, however, be material (ie price-sensitive) to ALY; but because the big company does the exploration and announcing, the shareholders of ALY are left in the dark even though something otherwise reportable by ALY may have been encountered. IGO has been sparse with its release of exploration news so ALY has had to sit and wait in silence, in ignorance too.

No news, no control, no influence; it's bad news for the SP - suffocation. TLM suffered the same fate with the farm-out to SFR and still suffers it seems, even though it's now in a real jv.

So, ALY now has some independence .

BlueCrest crushed RNI's price over some months while it sold 45m shares. It's doing the same here with large holding. It became involved with both companies on selling the Grosvenor Gold assets that it had become stuck with. Investing in companies like RNI and ALY is not in its business plan, so it's no surprise to see it vacate. It's annoying though that it chose to sell en-masse on market in both instances.

As for NST's involvement read this from 24/2/15 ann:

Northern Star will also invest $500,000 in Alchemy in return for 33.33M fully paid ordinary shares in the Company at an issue price of $0.015 per share. The placement will make Northern Star Alchemy’s largest shareholder, and entitles Northern Star to nominate a non-executive director to the Board of Alchemy. Northern Star has expressed an intention to introduce Alchemy where possible to projects which do not fit the Northern Star business model.

The last 2 lines makes the mind boggle. I asked the NST people at the last Gold coast RRS conference (last month) about this and got a blank vacant look back in return. So ???.

I don't see NST making any moves on taking the company over, but that said, it's going to get very interesting if IGO finds vms cu/au and the jv agreement is triggered as a result. That's when NST may take a greater interest in ALY, and in both senses of the expression too.