RE:RE:I have a PlanSmallcapinvesto wrote: I own both companies and prefer to continue holding them separately. The potential for a strategic buyout goes down when you have a company operating two different businesses in different countries, and Greenstone is undoubtedly aware of this.
I believe one of Greenstone's founders was involved in the Las Bambas transaction (~$6B USD Chile near-production mine sold by XStrata to MMG) and probably has contacts from that experience and sees a potential value at much more than 20 cents Canadian if the company is successful. This is the smart money that offered to buy the entire financing at a 36% premium to today's price 6 short weeks ago.
I like Excelsior for a lot or reasons but it has different risks. If Gunnison proceeds the economics will be unreal. However, no permit, no business and the US can be a tough place to operate. I hold Excelsior shares for a possible home run if it is a success. I consider Coro a lower risk investment for now. My own holdings are more concentrated in Coro than in Excelsior.
The trend in the share price is downright ugly. I don't see a reason Coro's shares are down so much in the last 3 months. No negative news. Steady copper price. The general turndown in the market has been mostlyl mild (just look at Excelsior, maybe down 10% from peak). I see a lack of promotion and investor interest in this company. I would rather they spent money building the company than placing Stockhouse articles and advertorials / promotion.
In the meantime my hands are hurting from all that catching of falling knives in acquiring a few more shares.
I said that about the friendly merger of the two companies as tongue in cheek, but I disagree about the lack of synergies. Take a look at Lundin Mining (LUN) with the giant copper mine in DRC - the toilet dump of the world that is one of the most corrupt countries in the world - and other nickel, lead and zinc projects at far-flung places. LUN sold its 30% Tenke mine in DRC to the Chinese for US$1.1 billion. LUN used to own 100% of Tenke, but needed Freeport (NYSE: FCX) to come in as a partner reducing its stake to 30%. They are now rumored to be bidding for BHP's copper mine said to be over $1 billion asking price on the block...I held Tenke Mining (renamed Lundin Mining) more than a decade ago at $1.00 and it went to $27.00 which I regretted selling too soon for my 100,000 shares stake.