Marathon Gold Corp T.MOZ

RE:Congrats guys

[AlwaysLong683]

NineLives wrote: And BJ  !!!
They got a steal unless a white night arrives.
Don't forget in case it's not halted, to pull any standing term sell offers you might have left in.
Seen that happen before !

A White Knight scenario is when a hostile takeover offer goes public. Management then looks for another entity to beat what they consider a lowball offer for the company.

Conversely, Mark Mason stated the following in the PR:

“The business combination with Calibre offers Marathon shareholders the opportunity to participate in the growth of an important new mid-tier gold producer on track to produce 500,000 oz of gold a year. Through this Transaction, Valentine will be fully funded to production without additional debt, royalties, or shareholder equity. The combined company will have three high quality, cash flowing gold assets, a strong balance sheet, and leadership with proven credentials in value creation. The Transaction offers the ability to fully realise the potential of Valentine without the limitations of the single asset project developer. Shareholders will continue to participate in the success of Valentine’s development, supplemented now with a renewed focus on exploration and discovery and the considerable upside potential of Calibre’s own proven operations and cash flow growth. We are proud of the work accomplished to date by the Marathon team, and strongly recommend this Transaction in the interests of shareholders, Marathon’s employees and community partners, and the Province of Newfoundland & Labrador.”

I never inested in this company mainly because of Manson. People thought the project was fully funded, only to watch him do another equity raise at what was considered at the time to be significant share dilution. I suspected he'd probably do it again before first pour. He all but admitted this in the following excerpt from the above quote:

..."Through this Transaction, Valentine will be fully funded to production without additional debt, royalties, or shareholder equity...."

Feel bad for those whose average price per share is $1.00 or more after having waited years for their payoff, but this was a small mine with many missteps along the way (remember the delays in getting permitting for the Valentine project because their initial proposal was sent back to MOZ as inadequate...?).

Same thing happened with Sabina, BTO bought them out and shareholders on their BB were outraged as many owned shares for years waiting for first pour and felt BTO got the company on the cheap.

MOZ's share price will most likely follow the ups and downs of CXB from now until the deal closes. In the case of Sabina, the share price had a nice run after the announced deal mainly because gold companies and thus BTO share prices rose in value. If I was a MOZ shareholder, I'd sell and move on...