Oromin Explorations Ltd OLEPF

TGZ takeover

[shootforthemoon]

To the person saying OLE and TGZ will now go into negotiations. From the events that happened with another one of my stocks, Inmet, when the offer is made publicly the acquiror will go straight to the shareholders while continuing to negotiate with the target company.

 

If TGZ gets over 51% of which they already have 25%, then the deal is all but done and no need to get Chet on board. That is why they are asking for ppl to tender their shares to the offer.

[topoftheridge]

I believe is is 66% they have to get  so 41% on top of the 25% they have  so about 40 million shares

[Goldfather]

good point Shoot. Was thinking of that. But i dont know if they can egt to 51%. They'll need another 26%. Mgmt alone has (maybe) 12% alone..... i dont know where the other 65% shares are. ? Retail investors, and Institutional make it up, but dont know the %. Someone here must know.... Just a guess, but maybe small institutional % at 5%.... and i guess retail is the rest. You wouldnt think so

[IloveNDM]

I make a fair size bet Grandich will tender his 3 million shares. The question will be does he tell his readers to do so at the risk of his job? Here too I bet he does.

[tony1969]

What about OLE's poison pill?  As far as I know it is still active and has not been removed.

[bluestar]

great point tony. keeps the thieves at bay.

[Capharnaum]

Grandich will tender his shares when the offer has been bonified. Chet knows he needs to get a deal done so he's working at getting TGZ to raise their offer. Within two weeks, an offer that has OLE's management approval will be on the table.

[Goldfather]

thanks Top.... so,   do you think they could get 40 mil shares tendered for  an (increased)  Tg offer ?

[shootforthemoon]

Gold, 51% when you already have 25% is very easy to reach. First Quantum took out IMN very easily and they didnt own any IMN shares. In this case, TGZ only needs about 1/3rd of the remaining shares to obtain control of OLE.   As to who will tender their shares, the answer is very simple, all the volume in the last 2 days, are 1 of 2 ppl   1. quick flippers out to make a dollar 2. Buyers,

[Goldfather]

Shoot: good analysis,,,, but i think Top here said it'd need 66%, not your 51%.....  but your benefits of buying ole here/now is a good one. Like getting Tg at 65  cents..... assuem you saw  Mackies TG target  at $2.30. This JR market moves slow, b/c of all the flippers, and basically Penny stocks.... but i bet   after the mackie report gets around, 

[shootforthemoon]

It may in fact be 66% as a lot of poison pills require that. But still they need 41% out of the remaining 75%. With respect to the other HT I have seen, both companies added a sweetener, but its very minor like going from .58 to .61 a share.   The problem is with pure explorers is that they are unfortunately a dime a dozen at this time. I could point you to a dozen other gold stocks that have

[shootforthemoon]

With respect to Mackie, I do my own valuations and actually had a similar price target but I stayed away mainly due to the hedge book (gotten rid of now) and life of mine issue (this takes care of that issue)   So IMO, TGZ could become a major player in 2-5 years. Maybe the next IAMGOLD or Yamana.    

[Goldfather]

good stuff Shoot  !.....Glad to have u on board.

[Mallard2]

TGZ was over $2.20 just last February!

[imurhuckleberry]

Shoot - who are your bargains currently? Are you looking a P/E ratios under x?

[shootforthemoon]

I try to look at a range of things, from valuations, balance sheet, cash cost.   I have about 80% producers so biggest issue to me is cash cost and balance sheet. If the company looks viable then onto the P/E which widdles the list down to who I like the most.   Right now, my favs are TGZ assuming the deal goes through, ORV - very cheap under the radar IMO, CAL - also very cheap and is

[Goldfather]

Mallard... good point. TG was $2.20 a short time ago (Jan 2013,)  and could be back in that range soon w/ Ole on board .