get a better deal

Been unable to post on hotcopper recently but now I am back (here at least) and I have to agree with Stateside and others. Not a good Deal.

Think overall seeing all the details the deal is simply not good enough and shareholders should vote it down then go back to the Chinese or the Russians or elsewhere for a better one.

My main objection is that 20 million aus for the rest of the Zara area's is derisory. Chalice almost are selling the whole company with this deal but not getting much for it.

http://chalicegold.com/Projects
Zara Project consists of six contiguous granted licences

The problem is how to deal with the political side of course. Maybe pressure is being put onto Chalice by the Eritreans to do a poor deal as a pay off for Chinese political support.

If this is the case have some sympathy for the management maybe they cannot just say no to the Eritreans but if the shareholders say no the Eritreans will not be able to say or do much.

Maybe just selling Koka and giving the Chinese first refusal on joint venture proposals would be a way round getting full long term value and dealing with the politics.

Anyway politically think pressure will ease and a lot of problems will blow over so probably the worst time to do a deal is now.

Very funny seeing Chalice finding more and more gold with every bit of further exploration but why is anyone surprised some recent news from around the Nubian shield region.

Discoveries northern Ethiopia
http://www.mining.com/2012/01/02/us5-billion-worth-gold-reserves-discovery-in-ethiopia/

centamin
http://www.growthcompany.co.uk/news/1683703/centamin-increases-gold-production.thtml

nevsun
http://www.tesfanews.net/archives/6111

south boulder
http://www.proactiveinvestors.co.uk/companies/news/37665/south-boulder-mines-steps-on-the-gas-towards-its-transition-to-potash-producer-in-eritrea--37665.html

stratex
http://www.2merkato.com/20120103741/stratex-international-discovers-gold-deposits-in-ethiopia

Gippsland
http://www.capitaleritrea.com/business/eritrean-geophysical-survey-update/

This is only recently but you get the idea, whole region is lousy with minerals which is another reason Chalice should not be giving away so much for so little.

Robert