RE:RE:Bye Bye AlioAs an Argonaut shareholder, I do believe this deal makes sense for both companies. Argonaut has a great project in Mexico just north of Ana Paula, experience operating in Mexico, and the financial capacity to build it.
Alio and Argonaut were both about equally undervalued by a market that doesn't like junior gold producers. This merger will lead to re-rating for both, and makes the combined entity a much nicer bite for an intermediate to smaller major.
The combined entity has a strong balance sheet, lower SG&A costs per Oz, and a pipeline of three high quality projects to develop.
The turn around in Florida Canyon has been great, but in this market it was clear neither Alio or Argonaut was going to get their due at their current sizes.