From "The Gold Report"TGR: In another post on www.grandich.com, you talk about your accumulation of shares of Oromin Explorations Ltd. (OLE:TSX; OLEPF:OTCBB). You pull up a technical chart to help make your case. You strongly believe it will receive a takeover offer. Why is that a reasonable thesis?
PG: It's my single largest holding ever in any company, period. Oromin has the footprint of a company that's heading in that direction. To begin with, the company has made it known multiple times for almost a year now that it has engaged an investment banker to explore all sorts of strategic potential factors, including being taken over.
Second, the country in which it operates, Senegal, has been actively promoting that district as the next up-and-coming gold district in Africa and the world.
Third, for another public company that has a substantial position already in Oromin, that has built a mill near Oromin's projects and that will be forced sooner or later to look for resources elsewhere, it makes a lot of sense for it to look at Oromin as an acquisition. The combination of both of them coming together could then pose a very attractive takeover and another bump up by someone even larger in the area.
It's a combination of all of these factors, plus Oromin has been around a long time. It's been a story that's been in development for years. Managements of these types of companies like to get to this point and be taken out because they would like to start over somewhere else.