Oromin Explorations Ltd OLEPF

RE: If OLE gets sold, $1.40-$1.80 max buy-out

[nailati]

Although not a pure gold play (1.5 m ozs gold and lots of copper), Peregrine Metals was trading at
.80 in early July when Stillwater Mining took a run a them. Next day it  traded at almost $3.00 and now sits at $2.40 thanks to the market malaise. That`s a 200%-300% increase.

In March, AUX Canada bought Ventana Gold for $1.5 billion, and Ventana had 3.5 million ozs gold with some silver and copper.

Also in March, Newmont bought Fronteer Gold for $2.0 billion and Fronteer had 6 million ozs gold.

So there is a little more promise than we think. That said, I do agree that from a marketing/promotional perspective OLE has done a miserable job and will certainly cost all shareholders some premium on the takeout offer. 

I for one am not holding out for 5+ times the current market price. But based on the numbers (resource, blue sky potential, cash on hand, etc.), and despite OLE`s poor promotional efforts, 3x the current market price (with a bit of appreciation to the $1.20 level in anticipation prior to the offer) is achievable giving a takeout somewhere in the $3.50-$3.75 range - which equates to about a $1.1 billion takeover price.

Keep fingers crossed.