Careful What You Wish For......SBB close Fri. Feb 10: $1.58
(Takeout of SBB by BTO announced Mon. Feb. 13)
SBB close Mon. Feb. 13: $1.74 (up over 10%)
SBB closed today: $1.91
SBB's share price has risen 20.89% in less than six weeks since the takeout was announced.
SBB one of only two Canadian gold mining or exploration companies currently very close to their 52W-High (Alamos being the other).
vs.
Price ofr Gold close Fri. Feb 10: $1,866.20
Price of Gold close today: $1,979.40
Price of Gold has gained 6.07% over that same time period.
If SBB does not get the 66.67% or more they need for a "Yes" vote on the deal, I suspect:
a) SBB's share price will drop by quite a bit.
b) If SBB is no subsequently sold to another entity, the company may experience cost over-runs, project delays, etc. as Goose Mine is being constructed which would drop the share price quite hard and likely cause further equity raises as I doubt they could find a lender that would offer them more debt financing, or if they do, it will be at ridiculously high interest rates with existing lenders also having a say should there be debt covenants in place which prevent SBB from raising more debt.
c) Unsure SBB will get to first pour at Goose if they mine it themselves, but I doubt it will be on or before its current target date of Q1 2025 as I suspect there will be issues as SBB proceeds with the mine build given the location, causing delays.
Conversely, if the BTO deal does go through, I think the Goose Mine project will be on much more stable ground financially with greater monetary resources from BTO should they be needed and thus a quicker resolution to financing issues to get to first pour.