RE:Stockhouse @ the Bell: TSX Lower for Fourth DayHere is the deal....all predicated on Escobal coming back online and the 22m ounces of silver production that happens quickly...PAAS stock easily goes to $40 us
They issue 10M shares to LUM shareholders, all stock transaction for a purchase price of $400M us. (LUM shareholders essetially getting $1.50 cdn)
10M shares is not a lot of dilution for an asset worth NPV of $3B
PAAS has no debt and with the extra $225M in cash flow per year from Escobal they build the mine in Ecuador....they add 370,000 ounces of gold at cash costs of $600 per ounce ....I am a PAAS shareholder and it sounds good to me. I am also a LUM shareholder and it sounds good to me.
Simple transaction everybody wins!