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Volcanic Gold Mines Inc T.VG


Primary Symbol: V.VG Alternate Symbol(s):  VLMZF

Volcanic Gold Mines Inc. is a Canada-based company, which is principally engaged in acquisition and exploration of resource properties. The Company’s projects include Holly project, Banderas project, and Motagua Norte prospect. The Holly project is located in eastern Guatemala in a terrain with gold-silver mines and deposits. The Holly property straddles the regional Jocotan Fault which forms part of the Motagua Suture Zone, 400 kilometers (km) long by up to 80 km wide deformation zone that separates the North American and Caribbean plates. The Banderas Project is located in Guatemala and has a caldera and rhyolite dome complex with gold-silver-rich epithermal veins and breccias extending over nine square kilometers. The Motagua Norte has approximately 240,000-hectare land position. The Company’s subsidiary is Recursos del Golfo S.A.


TSXV:VG - Post by User

Bullboard Posts
Comment by GACABon Sep 29, 2010 1:30pm
262 Views
Post# 17507482

RE: RE: RE: RE: RE: RE: RE: RE: NEWS: VG Gold + Le

RE: RE: RE: RE: RE: RE: RE: RE: NEWS: VG Gold + LeTheoretcially you are correct to say that VG shareholders should sell and buy LEX shares at current prices.  Problem is if enough VG shareholders sell then the VG shareprice will fall which will lower the consideration LEX shareholders are getting for their LEX shares.

i.e. at present  1 LEX share is worth 2 VG shares @54c = $1.08c (theroetical value)

When LEX share price today is around 85c to 90c (discount due to uncertainty as to whether deal will go through).

but if a large % of VG sharehlders sell then VG shares could fall to 40c for example which would reduce the consideration to 80c.....if this were to happen then the LEX shareprice should adjust to reflect this.

The above example is obviously completely theoretical but in my opinion if you are a VG shareholder and you did not own LEX shares before today I think you have missed the boat and the majority of the gains.  I therefore think the best course of action is to just hold on to your VG shares rather than to trade them for LEX shares.

Just my opinion.
Bullboard Posts