Oromin Explorations Ltd OLEPF

RE: These two companies need each other more than.

[comet52]

Long report on M&A activity in the sector.  

"Buyer and seller agreement on deal valuation has become
increasingly difficult to bridge in 2012 due to the volatility of
commodity prices and growing divergence between mining
and metals equities and commodity prices. Sellers have been
unwilling to accept lower valuations based on their depleted share
prices in 2012, looking back at 52-week highs and expecting
healthy premiums.
This divergence is causing longer, more complex deal negotiations,
resulting in sluggish M&A at best. Chinese private equity fi rm
Cathay Fortune’s now lapsed hostile takeover bid for Australian
copper junior, Discovery Metals, is a prime example of the
valuation gap that emerged in 2012. As a result of these factors,
both the value and volume of M&A completed in the mining and
metals sector has decreased; 941 deals completed during 2012,
amounting to $104b, representing a year-on-year decrease of 7%
and 36%, respectively."