Golden Valley Mines Ltd GLVMF

RE:Gzz

[cigarbutts]

It is a no brainer.................BUT................your assuming the combined BOD of GZZand/or RZZ has some brains!

GZZ could sell some of their shares in RZZ and use the proceeds to buy back remaining GZZ shares in the open market,   thus capturing some of the current discount between the two companies valuation for the remaining GZZ shareholders. 

OR

GZZ and RZZ could just merge the two companies with RZZ buying GZZ ina stock for stock merger as some reasonable  10% discount (or so) to the actual FMV of GZZbased on their holdings of RZZ stock.    THis would be equivalent to a large stock buyback by RZZ as the shares issued to GZZ stockholders in the merger would be less than the amount of RZZ shares retired that GZZ holds.


The reason the tiny brainsin QC don't do this are simple FEAR and GREED.    MUllen would lose control of RZZ thru the almost 50% shareholding of RZZ thru GZZ,  as those shares would get distributed around to ALL GZZ stockholders in the exchange of shares in the stock forstock merger.   That is the FEAR.

GREED is having two companies in yourback pocket to collect  stock options,   RSU's,salary,  Canadians tickets,  deferred comp,  bonuses,  etc. etc.   the usual BS from managements that burdens virtually all of Canadian mining investments. Overheads as a percentage of FMV or revenues or cash flows   are indeed BURDENSOME at these companies,  both of which are essentially passive investment vehicles in the Marlatic mine,   all other assets combined of the two companies being of little value.  

Corporate governance in Canada in the mining sector IS TERRIBLE.   IF BALL or MULLEN or anyone on either BOD was concerned about running dual overheads  at a passive Marlatic royalty situation,  this merger stock for stock would have been done a year or two ago..................but no the FARCE continues!