RE: kaiser/shore/mpv deal Is it a joke?
Kaiser says watch for Mountain Province deal at $5
2005-11-14 15:31 ET - In the News
John Kaiser, writing in an Oct. 25, 2005, Tracker, says talk surrounding the merger of Shore Gold Inc. ($7.05) and Kensington Resources Ltd. ($4.51) has left out something important: Should this new company with a market capitalization of $1.1-billion feel like flexing its muscles and start hunting for diamond juniors, the most obvious candidate would be Mountain Province Diamonds Inc. ($2.54). Mr. Kaiser said buy Mountain Province three times between February, 1997, and December, 2001, at prices from 62 cents to $4.31. An investment of $1,000 each time would be worth $5,954 today. The letter writer says Mountain Province is presently in a holding pattern waiting for the year De Beers is finally ready to make a cash offer to buy out the company and its 36-per-cent carried interest in the Gahcho Kue diamond project. Mr. Kaiser says he would not be surprised if during the next six months Shore-Kensington's Ken MacNeill offers Mountain Province shareholders something in the order of $5 per share in Shore-Kensington paper. Shareholders might go for Shore-Kensington's "dynamic management" -- especially considering that it will be another five or six years before Gahcho Kue achieves production.