Business
Mega Moly Inc. Strategic Realignment
Mega Moly Inc. Strategic Realignment
About this update from Pinetree Capital Ltd.
[{"type":"text","content":"\nMega Moly Inc. Strategic Realignment\n\n\n Aug. 18, 2010 (Filing Services Canada) -- MegaMoly Inc.  (MGY - TSX Venture), is pleased to announce that the Company has, following a full evaluation of its current project portfolio and investment mandate, decided to embark on a shift in its strategy to realign the Company to focus on natural resource opportunities in South America.  The Company's board of directors executed a detailed evaluation of the current assets within Mega Moly and debated their probability of success in maximizing shareholder value.  This evaluation included an examination of the current global molybdenum supply/demand scenario and forecasts of future pricing.  As a result of this process, a determination was made that while the two molybdenum projects that are within the current Mega Moly portfolio have a reasonable chance of success the board felt that there were other, more attractive opportunities in the junior resource sector available with superior probability of success.Accordingly, and with the board's full knowledge and support, over the course of the last six months the two major shareholders of Mega Moly, namely Pinetree Capital Ltd. (TSX:PNP) (\"Pinetree\") and Resinco Capital Partners Inc. (TSX:RIN) (\"Resinco\") have been exchanging ideas relative to creating a modified or entirely new direction for Mega Moly.  During the course of those strategic consultations it became clear that there was significant interest in pursuing potential opportunities in South America and specifically Argentina, Chile and Peru.  Both Pinetree and Resinco currently have investments in South America and have built up a strong network of advisors and consultants.With the support of the Mega Moly board of directors the Company has begun some initial due diligence on projects which had been identified by certain advisors and deal promoters.Over time the Company intends to assemble a portfolio of projects with short, medium and long term liquidity capabilities.  The Company intends to take advantage of the vast array of natural resource exploitation opportunities in South America and plans to become a leading developer of assets on this exciting continent of South America through acquisition or partnerships.As part of the re-structuring and realignment...