Tender offer - DDFrom what I see, the GII and MLM shares are worth about
.70/ SDRG share, although MLM is a small company and GII is a relatively illiquid stock. GII is an industrial Company based on Edmonton but traded in Frankfurt, and has 77 million shares outstanding and a US$100 million market cap, but averages less than 1,000 shares/day of trading.
I have no trust in any paper gold or silver, so I attribute on value to the warrants. Yes, silver could soar and make the silver warrants worth a ton in 2014, but I am a firm believer in PHYSICAL gold and silver only, and thus woud never attribute value to silver and gold warrants. Moreover, the gold warrant would require a significant investment if exercised.
Will do more DD tomorrow, but so far it looks to me like you are getting something like
.70/share of stock (about 90% GII/10% MLM) for your SDRG shares, if you tender the offer.
I of course have no interest in trading my highly undervalued SDRG shares anywhere near this price, but that's my DD so far. And if you are considering this exchange, I heavily advise you to do your own DD, as this deal is more complex than most.
BTW, 200 DME has risen to
.266 and continues to creep up each day. Should offer strong support, IMO, particuarly given all the exciting things that appear to be going on with the Company. Don't discount the fact that the Gold Cartel has miserably hurt sentiment in this sector in recent weeks in their attempts to keep the end game from occuring, but rest assured it will, and when it does the whole sector will fly.
Jim Sinclair maintains that gold will be $1,650 by January 2011, and if it is silver will likely be above $30/oz., IMO. Where do you think SDRG would be in that scenario?
yoyo