RE:RE:RE:RE:RE:True North StoryGood points.
I don't know what the hold up is to be taken over. Ultra safe jurisdictions. This is puzzling. Even just go for a hostile takeover. There's been basically 0 M&A this year in midtiers besides Richmont takeover. So I think the industry is just afraid.
BoD probably does not want to sell. See one of Huet's interviews in January 2017 either Financial Post or Globe and Mail...he said "I built this thing and it would take an extraordinary company to make it work" something like that. Basically Huet thinks he's the narrow vein mining king. Sorry but Q3 was a disgrace.
They should take $ 5 CAD and move on. Gold price should recover after FOMC..this is a bearish phase for gold now...but they 95 % will hike and it'll be done & we can move on.
With Fire Creek grades still outstanding and new zones to boost production + Hollister looking not bad anymore, this is now dirt cheap. They just need to shore up/validate True North which will only be known in January.
They do need the right acquirer to make it work...Huet is right there...but Huet is not the only guy who can make this operation flow if a takeover were to happen.
As for the comment with VanEck (GDX group), they do have
7.8 million shares, but KLDX is also their smallest holding now at just 0.23 % of total holdings. That would hurt in the short term if they liquidated but it's still not a massive amount of shares and could be sold through in a week on regular volume which is over 1.3 - 1.4 M shares a day lately.
Almost like someone took KLDX down the past week on purpose to get them below the $ 450 Million minimum for VanEck. Anyway, there will be buyers at these levels.
Two remaining obstacles: 10 more trading days for tax loss season as of Sunday & Fed meeting this Wednesday. Then everything will be priced in.
JIN
goldminer01 wrote: They can always sell TN / Bison to SSRM- and get their investment $40-50 M back -- which has major operations nearby in Monitiba as well. SSRM is loaded with excess cash and liquidity, with which they have to make a purchase (s) to remain in business 3 years from now. TN/Bison would be a good bolt-on for them.
Forget operations and progress thereof.
Klondex is a pure takeover play. Unless the entire exec team is dismissed en mass due to sexual
harassment or other crimes and they go BK, some other gold miner will come in and take them out.
Don't even bother reading about production or drill-exploration news.