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Roxgold Inc. T.ROXG

Roxgold Inc is a Canadian gold mining company. It is engaged in acquiring and exploring mineral properties. The company has two reportable segments; Mining operations and Exploration and evaluation of mineral properties, located in Burkina Faso. Its key asset is the Yaramoko Gold Mine, located in the Hounde greenstone belt of Burkina Faso, West Africa, and Seguela Gold Project located in Cote d'Ivoire, West Africa. The company's primary income is derived from the sale of gold.


TSX:ROXG - Post by User

Comment by RONNIE111on Apr 26, 2021 8:45pm
213 Views
Post# 33072052

RE:RE:RE:answer for Kevmax

RE:RE:RE:answer for KevmaxYes what you say is true.  It is possible for there to be, I think it's called arbitrage , a difference develop between RoxG share price and Fortuna share price x .283.  By my calculations , at the end of trading today the arbitrage is $.0257  .   As long as it looks like the deal will complete, I would think the difference would stay similiarly small.  

Some folks are complaining that this isn't a good deal for RoxG, and I reserve judgement at this point.  Fortuna doesn't seem like an exciting company by any means.  That's not always bad.  What is interesting to me is that up until a little over a month ago, RoxG was stuck under $1.6.  It had moved a little higher when gold moved higher.  But there didn't seem to be any reason why it would budge off $1.6 except with higher gold.  The completion of the new mine is too far out, and of course there are all the risks inherent with building a new mine.  But then as was noted on this forum a month or so ago , volume started to spike nearly everyday, and it seems obvious that the ,inside, news of this takeover was out there.  So I think it can be argued that the $2.21 we are at today , and not $1.6 is because of this takeover, and that is a nice 37.5% increase.  And if Fortuna regains the $10 share price it had basically yesterday, and in my opinion they are getting a real good deal here so there is no reason to think that wont happen, then RoxG goes to $2.83 which is a 77% increase over the $1.6 .  
Now I think RoxG would have made it to $2.83 , with the same price of gold as now, once the new mine opened without any big problems, or more, but I am pretty happy to have that now and not in a year or more.  Too much can happen in a year.
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