How would it end? Given some indications that the resource estimate might be out over next couple of weeks, I am again thinking how to square the current plrice with buyout offer.
It is my expectation that the resource estimate for California will be soon followed by an offer (they might be concurrent - in the same new release).
The price is being managed so that it does not get out of hand and folks are not disillusioned when the offer is made (as the premium would be less on a runaway price). Assuming that the price jumps to $1.5 on the anticipation of a news and then an offer of ~$3 for California is made implying a premum of 100%. However, to those (inlcuding me, so this is a question to myself as well) who are expecting an offer of ~$5 for California, the premium on $1.5 would be ~250%. What bothers me is that these premiums are unheard of. Am I correct? Have there been deals in gold sector over last few years with these kind of premiums? There is always a first time....
Or, they could let the price run to $2 or $2.5 and then offer $5 with a more platable 100% premium.