GREY:NRRMF - Post by User
Post by
bplondonon Jun 17, 2011 2:23pm
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Post# 18730390
It will happen soon (I think) but...
It will happen soon (I think) but...it will happen when Pan American wants it to.
If Orko and PAA did indeed meet earlier with Snowden and AMEC, what the hell were they discussing? I wouldn't be surprised if the PEA was already done.
PAA is certainly running it to the wire and, as a result, I believe they will have no choice but to buy out Orko completely (they cannot construct the mine in time to fulfill the obligations of the JV agreement-it would be the ultimate slap in the shareholder face if Orko management offered PAA any extension whatsoever on the JV Agreement). But the buyout will come at what is a traditional seasonal low point for the markets (late July/early August) and what is quite possibly a seasonal or trading period low for the spot price of silver resulting in an optimal buyout price for PAA.
Price offered by PAA for Orko $5.00-$5.50 share. Whether someone else comes in to bid for the 45% at a higher price remains to be seen. Perhaps a 50/50 chance but it will happen within a week of PAA's move or it won't happen at all. At least Orko mgt. is putting out the message that they are up for grabs.
Shareholder rights/standstill clause, etc. notwithstanding. Rigged game. The big guys make the big money. But still some decent money for the little guy.
Just my opinion of course.