quakes99 wrote: Hi juro... still reading... just taking a break. My head's still spinning from working through the PEA vs MRE comparisons and today's drill results. I guess I wasted my time with that anyway, as no one seems to care about tapering growth rates or cutoff grade effects, nor expansion at R600W and how much it will cost in time and $$ to complete that work. It concerns me that we may not reach our expectation of over 150M lbs, or that elusive 200M that many have said.
What I do find incredible, though, is the complete failure of so many on the board to understand the size and scale of this proposed merger when you zoom out and try to get some perspective. According to the NAV tables prepared by the valuation team at Raymond James, the combined Net Asset Value of the proposed Mergeco is around
$2B... that's
Billion...
$2,000 Million dollars which would be jointly owned by, if the merger is approved, around
1 Billion shares in shareholder equity (1:2 split ignored).
Think about that...
1 Billion shares represents 3 shares each for every man, woman, and child in the US and Canada combined. That NAV of $2 Billion would be
$6 each for those 330 Million+ men, women and children. This is an incredibly huge transaction when you look at it in the context of other major corporations in the Uranium space. As it says in the Circular under the Reasons:
After completion of the Arrangement, the Combined Company is expected to be one of the largest publicly traded exploration and development companies in the world by market capitalization. Yet, given the size and scale of the 2 companies involved and their $2B in assets, posters on this board continue to think this deal is like Alpha and Lakeland merging, or some other small transaction worth a few $Million. These are not 2 microcap companies combining their assets. This proposed deal is phenomenally huge!
Sorry to digress, but just wanted to put that out there in order to provide better context for what is going on with this proposed deal. I remain undecided but will be digging through the Circular and the filed PEA, to see what fine points need to be considered. Still lots of time.
I also enjoyed reading Stanley's posts this morning. I particularly like his point about Dev pulling the goalie in the last minute of play to put an extra man on the ice to help push the merger through. Got me wondering what information he might yet provide that isn't in the circular. Would he reveal a potential takeover offer sitting on the table for Mergeco? Or reveal other bids that were rejected or bidders who threatened to go hostile? Now THAT would put a new complexion on the vote if that kind of information came out in the 11th hour.
Appreciate your willingness to have a serious discussion on the cons and pros. Will let you know what I think when I've had more time to digest all the details.
Take care and good luck!
juro777 wrote: Quakes, did the info you were expecting show up in this circular? Curious as to what your opinion on the merger is now that you have all the info you were waiting for.
I took the past hour to read what I could of it (got through all of it, not yet with a fine toothed comb though). I was hoping for at least a proposed merged company strategy (something forward looking) considering the merged management team wants to take this to production. Instead, I see a bunch of legal jargon (much of it repeated more than once), balance sheets and nothing technical at all about the resources themselves. No mention of Denison's key property reports such as MREs or PEAs either.
Nothing I've read here has swayed me in the slightest to change my vote from no to yes... In fact, I'm an even stronger "NO" now due to all the hidden information that was released to us and recently posted on this board (compensations, the fact that this negotiation started over a year ago, etc).