RE:Best thing that could happen to Am Silver CorpHeywood_Silvers,
If you look at the history of junior producer acquisitions in the past three years, the silver producers have been buying junior gold miners in all stock deals.
Some examples are SSRI taking out Claude for .185 SSRI share plus .001 cash, Mandalay Resources taking out Elgin for .411 MND share or 37 cents in cash, TAHO taking out LSG for .1467 shares of TAHO. In each case, the acquirer got a producing asset with instant additonal cash flow. What does Americas Silver not have? A gold mine!
The following graphic shows the silver producers ranked in descending valuations using market cap per ounce of gold equivalent production. The cheapest silver stock is Orvana, and the second cheapest is USAPD. A merger with Mandalay Resources is unlikely because of Mandalay Resources different business model, and ASM already has its gold mine in British Columbia. So that leaves USAPD with three choices: reacquire their spin off company Scorpio Gold and get about 8-10k ounces per quarter in gold production, or take out GQM for about the same amount of quarterly gold production.
Or the most obvious merger candidate is Orvana Minerals (ORVMF). Why Orvana?
Well take a look at the following comparison of Endeavour Silver (EXK) and Orvana Minerals (ORV). As this comparison shows, Orvana' production will likely be higher than EXK within 2 calendar quarters, and the combined throughput of Orvana's 3 mines is about 4,200 tpd versus EXK's combined 3 mine throughput of 2500 tpd. And ORV has 13 cents per share in cash and is trading at 18 cents in the US. Now there is a merger that could be beneficial to both companies and move USAPD up the food chain rather rapidly.
