GREY:OLEPF - Post by User
Post by
tony1969on Oct 19, 2011 7:40pm
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Post# 19164974
Teranga option
Teranga optionTo me it has always seemed pretty obvious that Teranga would love to buy OLE. They already have the mil, their properties literally overlap eachother and they need the gold to secure their production for many years past their current projections. The problem is that as we all know they are too small. Their market cap is only $500 million here at $2.00 per share. They had more leverage when their stock was at $3 or a market cap of $750 milionl. Even then it would be a stretch to do a deal. A merger (God forbid because of the dilution) would make the most sense. I do not know how this would be structured being that OLE has a 43.5% stake in the JV. However,if both comapnies were combined they would have a working mil and over 10 million ounces of gold to mine. This combined company would definitely be the target of majors. The problem with a merger would be that Chet and us shareholders will get massively diluted again because of our ownership percentage. Yet another scenario would be a major buying out both Teranga and OLE outright. They would immediately gain a mil and millions of ounces right away. Around $2 billion for both give or take $500 million would be my guess. Does anyone see any possibilty of any one of these scenarios happening?
Remember, Teranga owns a piece of us already.
Comments?
Thanks,
Tony