Why the Discount???The reason is that the Canadian GCX Shareholders are not as confident as the GCX Shareholders, in Australia, that this deal will go through. Remember that Sino Gold needs 90% approval before this can happen. So to not get $1.20 now means we don't feel as strongly that it will happen, or at least as much, as they do in Australia.
Also remember that if this deal does not happen there is a very good chance this share price would drop. So that risk has to be part of our present share price now, which means it will trade lower and at a premium.
Just watch Sino Gold's Share price and the price spread between them, after the 4.5 to 1, and us. The closer the spread is the more likily this deal will go through.
GB