OTCQX:RPMGD - Post by User
Comment by
Ihateshareson Mar 11, 2013 1:19pm
75 Views
Post# 21111180
RE: RE: RE: RE: Most powerful?
RE: RE: RE: RE: Most powerful? The clock is ticking to the Sep court hearing and Coeur know they are fighting a case they cannot win. What use does a court date extension serve - the facts are pretty clear cut, the extension delays the obvious and allows Coeur more time to arrange the Rye Patch acquisition. Coeur are in the process of finalising the Orko acquisition and they have already stated that Orko will not be their last acquisition this year.
I don't think it is a stretch to assume that Rye Patch is a target. Coeur cannot contemplate losing these claims so they will have to buy them back, Rye Patch are not going to let them go cheaply so it makes sense for Coeur to take Rye Patch out as Coeur are more likely to get better value that way. And for that takeout to happen before Sep.
The fact is RPM's sp will increase as the Sep date approaches and will increase again after a favourable court outcome. It makes no sense for Coeur to wait 6 months and then have to offer a premium on a much increased RPM sp. Once the Orko deal is done and dusted I would expect Coeur to make their move, waiting only increases the cost of a take out.
Patience will be rewarded.