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Golconda Gold Ltd GG


Primary Symbol: V.GG Alternate Symbol(s):  GGGOF

Golconda Gold Ltd. is a gold producer and explorer with mining operations and exploration tenements in South Africa and the United States. Its principal business activities are the exploration, development, and operation of gold mining properties. It operates through its wholly owned subsidiary, Galane Gold Mines Ltd., two assets: a producing mine which also has the rights to certain mineral exploration tenements (the mine and mineral exploration tenements collectively, the Galaxy Property) located in the Republic of South Africa (South Africa), through subsidiaries located in Mauritius and South Africa; and a mine and processing infrastructure located in the United States of America (the Summit Property). Its Galaxy gold property is situated about eight kilometers (km) west of the town of Barberton and 45 km west of the provincial capital of Nelspruit in the Mpumalanga Province of South Africa. The property covers 58.6 square kilometers and is part of the Barberton Greenstone Belt.


TSXV:GG - Post by User

Bullboard Posts
Post by u8fishon Aug 31, 2006 11:40am
448 Views
Post# 11300562

Merger

MergerThe market is pretty efficient. Markets caps of G and GLG are exactly 60/40 as proposed under the agreement. I have owned G since WRM and Ian made it grow and I have done pretty well. However, to continually pay premiums and dilute the shareholders such as this deal is starting to get kinda crazy. How is this merger good for G shareholders? Looks terrible to me - GLG shareholders get to share in our good assets (and us in there's) at 60/40 when at yesterdays prices it would have been 70/30. As a shareholder I would have been better off by buying GLG on the market. In the long run it could be good I guess if there are synergies or more institutional interest from the merged entity. However, G was already a favourite of many brokers as a gold hedge and what synergies are there. I could see it with the placer assets we bought but not this. Anyone have some insight on the long term benefits? i must be missing something.
Bullboard Posts