RE: LGO Has Made A Spectacular Deal For UsDo you think Arias Resources Capital & Eton Park Capital &Mackenzie Investments (of Mackenie Financial mutual funds) are a bunchof dumbies? If it`s good enough for them it is certainly good enough forme IMHO.
Two of these houses were already investors and that is likely the reason Vinci is out. They did not like what the Vinci would do for the holdings they already had and were willing to make a better deal.
Koodos to managment for getting a better deal for shareholders.
Market Value of Shares
Prior to this deal the market value was discounted for the risk of a mine never getting developed. Everyone knew additional financing was needed to build a mine and this was cooked into the market price. The market price reflected this risk and uncertainty. Without the financing the rock was just rock.
Now, that risk and uncertainty has been removed. Largo's value has just gone up. The market will now price Largo as a major low cost, world class mine in development. As the world's lowest cost Vanadium producer it insulates Maracas against any possible collapses in Vanadium prices as unlikely as that may be given macro economic trends. Maracas will still be standing when all other fail should that happen. It is like an insurance policy that gives Largo added market value.
This was the reason there were buyers willing to take over 2,100,000 shares off of the hands of those unable to add things up today.