GBR Will get taken over. Gosh I like the sound of that!
The question is; by whom? I'm torn on who I would like to lead a takeover. At buyout I’ve had nice positions in Richfield (by Newgold), Silverquest (by Newgold), Kaminak (by Goldcorp), and Integra (by Eldorado). The strength of the company buying is a HUGE factor in what happens. When we know who it is we need to do our research. All deals were share exchange.
With Integra most or all of the premium paid evaporated in the weeks after. Why? Because Eldorado had big problems in Greece that it hadn’t been open about in NR’s. A stockhouse poster warned us, I confirmed by looking at Greece news, and jumped out with half my profits.
Similar stuff happened with Newgold, just took longer.
Scenarios
1.
If it's a major any future resource expansion tends to just blend into their global stats. So when it's done it's done. However, if the gold market is good it may be a safe place to park for a bit, unless you’ve got some celebrations planned.
2.
If it's a mid tier then there could be lots of leverage still after the buyout. Maybe what I'm thinking is an early buyout is better if it's a mid tier, as it leaves you with excellent leverage on resource expansion if we are still confident in that. Caveat - is the mid tier healthy?
3. A later buyout (with lots of defined resources) would be more likely by a major, cause they'll need lots of $$$$$ by then!
So I hope GBR drills the c_ _p out of this sucker for many many months before they do a MRE. Prove the resource please and thank you, Chris.
Finally, Hostile offers tend to lead to bidding wars. Not bad either.
Patience!