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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 30, 2010 9:02pm
205 Views
Post# 17515142

RE: RE: RE: RE: RE: RE: still power

RE: RE: RE: RE: RE: RE: still powerJPV5:

I'm pretty sure they wouldn't have made the press release with the LEX to VG share ratio in it without a letter of intent having been issued (including these details) and signed by the two parties.  The letter of intent isn't legally binding but it usually sets out the main terms of the deal so that both sets of Management have a fair idea what the final deal would look like before advancing to due diligence.

I would also like to point out that this is a friendly merger and therefore both sets of Management have discussed these terms in detail prior to the announcement.

As I stated earlier, the two things which will change the main terms (i.e. 2.1 VG shares for 1 LEX share) of this deal are if the fairness opinion comes back stating the deal isn't fair on the VG shareholders or VG shareholders vote against the deal.

In my opinion the fairness opinion will come back positive for VG shareholders as the deal looks pretty straight forward i.e. 10% premium over the net asset value of LEX (which excludes its oil, gas and uranium projects).  The oil, gas and uranium projects are probably worth at least the 10% premium I would say...without looking into it in any depth.

I seriously don't know why you are so convinced this is a bad deal for VG shareholders.....?  I would also point you to my post earlier today linking to an updated research note from Ubika on the planned merger.  If it was unfair on VG shareholders surely Ubika would have picked up on this?


Bullboard Posts