Harte/slrI have owned Harte and bought when NGD bought shares ,that obviously was my mistake and a bigger mistake for NGD.I sold my Harte when it became pretty obvious they were going bust.I also own Silver Lake ,these days its pretty easy to buy Aussie stocks .Silver Lake is a mid range producer throwing off lots of Cash ,my issue with them is that they were just accumulating cash and not doing anything with it ,no dividend no buyback .now they are deploying around 10-15%of thier cash hoard .Just for information debt repayment etc takes priority over common stock shareholders .The value of Hartes 1 billion shares currently is 20 million Canadian give or take .Silver Lake could either make an offer for existing shares (the nice thing to do) or just call in the debt and take Hartes assets that way .The bank which owned the Harte debt is one of those being told to increase thier capital balances so they have raised cash and likely sold the debt at a discount ,we dont know how much of a discount .I am not sure when the transaction closes .
Silver lake will take over Hartes assets ,they are getting a gold mine on the cheap and they have the financial (cash) resources to make the Harte mine into Avery profitable producer .I suspect that much of Harte management will be replaced .
The best way to play this is to get rid of any Harte shares as they are basically worthless and buy Silver Lake ,it is also cheap right now .that way you get to profit from Silver Lake turning the Harte assets around .It's as simple as that .