Karora Resources Inc KRRGF

Mulling it over

[MaterialsMan]

Now that WGX investors have had a day to think about, it doesn't look as if they are very impressed.
It was down to $2.20 AUS dollars on triple normal volume. And looking at the chart, the 2.20 held through the session. 
This is certainly not the valuation that I was hoping for. If my conversions are accurate, that 2.20 mutiplied by 2.5 comes out to about 4.90 cn, and 3.60 us.
Gold did pop 25 bucks after the close, and that might have made a difference. A little more patience is probably in order to see how things settle out.
I wish there was more volume on the OTC. I think it would be a better and easier way to measure sentiment. 
What do they say? 'It is what it is' I guess.

[MaterialsMan]

Interestingly, if the half buck in cash is figured in, the valuation is completely in line with what is being offered.

[fakmiz]

How do you figure :  Report  says the offer equates to $ 5.90 Canadian yet when I break it down here's what I get at todays prices. 2.541 shares Westgold @  $1.52 Can =   $3.88 Cash @  $0.61 Can                                       .61 Total value   

[MaterialsMan]

fakmiz,  I hate converting currencies. That's why I always got beat when I traveled out of the country and people used cash. I don't profess to be a great mathematician, but I feel pretty certain that at todays closing price on the Australian exchange which was 2.20 AUS. per WGX.AX share, that converts to $1.97 CN. Two and a half times that equates to about $4.90 CN give or take. I

[fakmiz]

I'm basting myb calculations on the price of Westgold on Canadian market  @ $1.52 

[cameronreilly]

Westgold closed at 2.19 AUD.   Not sure where your 1.52 Canadian came from? 2.19 * 2.541 = 5.56 Aud 5.56 AUD = 5.00 canadian add 61 cents cash plus cdn plus whatever the SPINCO 0.3 of a share is worth. 5.61 canadian plus that share value.  Somewhere it said 14 or 15 cents? $5.75 canadian.   Not sure if any of these numbers change as the stock prices change.  

[fakmiz]

Canadian Market shows Westgold Resources current price $1.44 Can. Down .08 . I used yesterdays Market figure.  This is not a good deal as far as I'm concerned.

[Odinson]

You can be absolutely certain the deal that they cooked for themselves will be MUCH better than what they are offering to us!!!

[Odinson]

We need to replace that cabal called the "Board" and get people in place that are committed to making that operation run properly. We clearly have the gold, we have the mine, we have the ability to process but what we are clearly lacking these days in competent management! You know, management who will put the shareholder interests ahead of their greed!

[MaterialsMan]

Maybe your beef with management is justified. But believe me, it could be a thousand times worse. I own stock in company that had a great business going. A supposed genius came in to take the reigns, took millions in salary, and drove the stock to basically worthless. A lot of people had put faith in this individual because of his previous success. He even got a spread in the WSJ. Human behavior

[Odinson]

I'm just looking at LSG, KL and now KRR ..... they all had / have something in common!!!

[Rainman01]

We are a stand alone operation for years with nickel and tons of gold Westgold needs us we don't need them. 

[Odinson]

Exactly! They need us and perhaps WE should be doing the "takeover" for some cash. I do not like any "deal" that involves us not being wholly in the driver's seat. I definitely do not trust the current board to do what is right for us shareholders. History has a way of repeating itself!

[MVargas]

MM: Now that WGX investors have had a day to think about, it doesn't look as if they are very impressed. Can't say that I blame them. Consider that KRR shareholders will own virtually 50% of the combined company and WGX is paying us C$0.608/share from WGX's cash pile and we get shares in the spinoff company that WGX shareholders don't get. Besides, WGX has higher production

[Rainman01]

Yes I agree with some of this but the money is not coming all from Westgold the money is coming from our bank and the spin company is our assets from Dumont and Kali  so for their shareholders to feel like they are hard  done by when in fact they are getting a better deal considering the difference in exchange if we get listed on the Australian market.