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Seafield Resources Ltd V.SFF



TSXV:SFF - Post by User

Comment by snoozlegroibon Sep 18, 2011 3:00pm
390 Views
Post# 19055507

RE: Buyout?

RE: Buyout?Well, Yamana Gold already owns 10% of the shares of SFF.  So they could just keep accumulating more shares so that their stake in SFF gets bigger and bigger, which would drive the share price of SFF up.  And given the voting influence they have, they would probably be successful in blocking a sale to another company.  So I think Yamana already has this one sown up.  Unless they would want to unload it to someone else.  But given the huge gold-bearing zones SFF has been hitting, I doubt it. So either Yamana would let SFF develop the project and profit by means of their part ownership (which they could increase by accumulating more shares), or eventually cut a deal to buy out the rest of the company.  But they would probably wait till there's a big enough resource (defined by drilling such as that which is going on right now), in which case the share price of SFF will have appreciated substantially.  So either way, we're looking at a future share price for SFF that's substantially higher than it is now.
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