This could prove to be interestingThe overall market for junior resource equities has been hit pretty hard for all junors which has had me filtering through management teams looking for potential gems and these guys popped up. At these prices I'd find both GQC and TKK a little interesting but combined and restructured these guys have some real potential.
Both companies have some pretty stellar assets, a very experienced team and a very crappy share structure. An amalgamation and roll back looks like the perfect fix for these two. Assuming the transaction gets completed the new company will have some relatively new leaders who have proven their abilty to bring projects to fruition and if the rollback goes through I think a tighter share structure will be a lot more appealing to investors. I've placed my bet.
The Guyana and DR gold projects alone have the ability to provide significant upside during the coming work season and already have close to half a million ounces of gold on each already. At current prices the market is only paying $15 per ounce of gold.
Obviously there is a lot of work to do here but if the transaction closes and the rollback gets completed I doubt they will have a hard time getting their exploration budgets funded and once that happens I doubt we'll be looking at a valuation of $15/oz..