Petaquilla Minerals Ltd PTQMF

RE:RE:RE:RE:Looks Like 60 cents For Panama

[wwadehammer]

 I believe that FQ will pay a premium for two reasons.   One, Panama Government officials won't object to the deal because they make a nice profit on their shares at 60 cents and they're still in for any profits from Spain.   Panama will look at FQ as the white knight that saved PTQ from an embarrasing bankruptcy by offering them a friendly deal recommended by PTQ management.   FQ needs the government's approval and this will lock it in.  Second and most important to FQ, FQ gets all of the land and has no more worries about Fifer bringing action in court about building roads or facilities on PTQ property.  FQ will have complete freedom to do what it wants.  Nice thing to have when your Cap-ex is 6 billion dollars and you eliminate the possibility of  a monkey-wrench thrown into your plans half-way through.

FQ will operate the gold plant to process the remaining molejon ore which will pay off  all or most of PTQ's debts over a four year period.  However, if it wants to, FQ has the option to delay gold plant operations and use all or part of PTQs manpower and equipment on its own projects.  I don't think there's anymore large copper or gold strikes to be made but if there is, so much the better for FQ.  If it's a copper strike worth developing, then it just increases the reserves.  If it's a gold strike, then FQ has a functioning gold plant just sitting and waiting.  So looking at it from FQs view, the net cost to buy out PTQ Panama will be $130 million after they're their done with the molejon mine.  FQ has already set-aside $420 million of the Cap-Ex costs for contingencies which is more than 3 times what PTQ will cost them.  And that's if no additional large ore bodies are discovered in the future.  FQ stockholders won't cause any problems for $130 million.

To me, it looks like a great deal for everyone except MJK who expected no less than a $7.50 per share payoff.  I'm sad for you MJK. Very very sad.