RE:Gran Colombia offers $252m in friendly, all-share offer for GCM are only doing what us Gold bulls would do if we had more cash.
That is "buy" other Gold companies while commodities are at historic lows.
Sure, we have to pay a premium of 44% (via share adjustments) and that is the bitter part.
If this is the commodity super cycle I think it is and we are going into a sustained inflationary period, then this will be a great investment decision that will give the shareholders greater % returns in the longer term.
There is a chance that another company could try and take a bite at Gold X now that they know what type of price it would take. In that case I would see that as a good thing as we will benefit from our effective 25% shareholding of Gold X and receive a premium far higher than 44%.
The worst-case scenario I believe is if we were to win a bidding war and end up "paying" a bigger premium for Gold X. In that scenario, it would take us longer to reap the benefits.
So to summarise, I am happy about how things stand now despite the negativity on our share price which I believe will be short lived.
GLA Sharegar.