RE: RE: RE: Awesome NewsI agree with a couple of your points sunshine20 but I don't believe SEG shareholders have a choice not matter what level EXN trades at. The fact of the matter is they will eventually realize value in accepting as the EXN SP rises and it will. SEG management likes the prospects of the deal thats why they have entered into it. At the end of the day either accept or face chapter 11.
On the PP side of things, EXN management is very cautious when it comes to PP's and dilution. They will run up production when this LOI closes and may not need to go to the market. Secondly, there are other options such as debentures which is a route they have taken before.
Regardless of how it all shakes out this is a long term hold for myself as I see EXN getting back to levels of last spring and possibly higher. This aquisition changes everything and your right the SEG mill alone at this level is a bargain. Just have a look at what ECU just paid for their mill.
Cheers!
ECU has entered into a letter of intent with Hecla, whereupon ECU will acquire the mill in consideration of a cash payment of $8-million (U.S.) and the issuance by ECU to Hecla, by way of private placement, of 750,000 common shares of ECU. If issued, the resale of the ECU common shares by Hecla will be subject to certain quantitative restrictions over and above the four-month hold period that applies under applicable Canadian securities legislation.