KLONDEX MINES LTD. T.KDX

SSRM shareholder

[prouditalian]

What do LT sharholders think of a merger/takeover of Klondex and SSR Mining. Assets seem to fit really well together. Both cashflow positive, both very little debt, both in US? Canada.
What wopjld ittake and does the deal make sense. 
Of course as a SSR shareholder I would like to see minimum dilution but dilution is inevitable as Klondex mcap is quite large.

[JintsuGehan]

Don't like at all this proposed merger with SSRM.  I would prefer a far larger market cap player bid on KLDX w/ cash + shares - not just a pure share deal. KLDX needs to work out Hollister issues first and validate the property before anyone is going to bid on them (i.e. Hatter resource compilation). But this looks like it shall be accomplished in Q4.  JIN

[goldminer01]

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[tjw4]

I've said it before, no way this happens. HEdge funds that own a nice 5-9% of this company are not taking too much less than the all time highs.

[JintsuGehan]

Yep like I said earlier this "latest" share price truly is an anomaly.  For whatever "bad news" was in the Q3 production results, the share price has been completely demolished as if total guidance went down 15 %, yet net guidance remains unchanged and tracking.  Completely insane. At this point, I'll take $ 5.00 USD a share and call it a day. This stock is

[goldminer01]

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[prouditalian]

I agree...5 dollars CAD would get the deal done IMO...combination of shares and cash. Klondex holders wojld likely vote the deal through as the larger company would get new fund money and wold be added to new indexes. We would talking about a 2 bil dollar company with strong cashflows and 600k production if Im not mistaken.

[prouditalian]

I bought my first position in Klondex this morning at 3.99

[JintsuGehan]

$ 5 CAD??? The 52 week high is $ 7.95 CAD.  I wrote $ 5.00 USD. No one is taking $ 5 CAD when the stock was just at $ 4.85 CAD last Monday a  WEEK AGO around 9:40 AM before the 5 day sell-off started...  PoG is still over $ 1280.. JIN

[prouditalian]

Im surre SSRM is looking as the mines are really close to each other and SSRM is sitting on lots of cash and Pretium shares...i think a 20-25% premium would be justified in a cash and share deal...Then Klondex shareholders would own a much better company for the longer term, more money would flow into the bigger company. 50% premium is simply wishful thinking. I would like to see the deal happen

[goldminer01]

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[CaptainConn]

These buyout prayers/speculation are amusing. It is not going to happen. This is not up for sale, not to mention the funds who bought in the financing deal at $7+ are not going to allow it. 

[tjw4]

all things i have been saying over and over...these funds would sell but not for shares..they would want cash and cash only. the only thing that ever scares me in these situations is a private offer for cash to the funds, and the rest of us get shares

[goldminer01]

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[prouditalian]

Of course the funds iend up accepting...the retail are the ones can never accept as they get too attached to their shares. My point was that the 2 have assets georaphically connected and wold make a nice match...at this point it wold only be possible for SSRM to buy them out and not vice versa. My measly 3k shares would vote yes.

[tjw4]

this company is almost 65% owned by funds, of course they accept, but they only accept good offers, this has been a big money maker for many people, they wont cut it near all time lows.

[prouditalian]

You nor I know what the funds will or will not accept. If there is a 5CAD offer with shares and cash...and they see the larger company has a better chance, they will accept it. Anyhow, this is all speculation and Klondex has some serious issues at the moment that need fixing.

[tjw4]

You are part right. You do not know, I do. These are colleagues of mine and many I have known for 20-30 years. I know they have been instrumental in turning around KDX, and bringing in Huet and they have made a lot of money off of this thing and they are not going to let it go for cheap unless they think it is done, in which case we should all bail.  But I know for a fact they still believe

[JintsuGehan]

You have no clue how capital markets work. No one is taking $ 5.00 CAD certainly not me to make a measly 5-6 %.  If the stock just traded at $ 4.85 CAD over 1 week ago, no one is taking $ 5.00 CAD..how can you even suggest something so insane??! Especially in a deal of cash and shares in your fantasy with SSRM (garbage stock)...NEVER happening 0 % chance.  Furthermore, I just re

[prouditalian]

Jintsu, I realize that you are sensitive to being taken out as probably down quite a bit...but in capital markets companies get bought out. The strong take out the weak. I worked in Cap Mkts for over 20 years successfully as a trader, sales/trader, then headed an equity desk...so I know markets. You are being overemotional. Take the average trading price over 30 or 60 or 90 days...add a premium

[prouditalian]

and Jintsu, if you feel it would be rejected you should be for a bid at 5 CAD as you would get an automatic price jump in your shares and could bring in other buyers. Instead you insult me ( wrongly )

[tjw4]

Jintsu is correct, you are not PI. Ask yourself a house today and tomorrow your neighbour lost his job so he sold his house for 50% off and now people came to your door offering you 80% of what you paid 2 days ago should you take it because its higher than what your neighbour sold his for? The greatest factors in wealth are, capital protection and time. Large funds got the time to wait out poor

[JintsuGehan]

This is the perfect metaphor tjw4. To PI: Proud Italian you definitely have zero experience in Capital Markets. No offense. What you're saying is nonsensical....you say I SHOULD BE HAPPY if the stock jumps to $ 5.00 CAD at this suggested takeover price??? I paid $ 4.70 CAD for my KDX Canadian shares and I paid $ 3.298 USD for my KLDX American ticker shares. Why in the world would $ 5.00

[tjw4]

If I was American or cared about the success of the country I would hope for Taylor but I do not I would welcome another 20 years of Ol' Yellen

[prouditalian]

there is no correct or wrong...its a matter of opinion. You cannot know what funds will vote for. Again, dont love your shares too much. Over 20 years experience in capital markets tell me anything is possible.

[GoldSilverbug77]

Does it occur to any one that we are just trying to proove a point to each other which are all hypothetical at this point. Let the offer be made and then we talk about price. At current levels Klondex is stupid cheap. Wont be suprised if an offer is made. Will it be accepted or not is a different question. They tried to do it with KL when it was in the process of getting merged with NewMarket but

[tjw4]

Well as of now everyone who says the funds wont accept offers is correct and you are wrong as there has been no sale at this point. Whenever you debate with someone do you state your credentials? If debating food do you tell them you have 45+ years in eating experience. Your 20 plus years are meaningless, but you sound like a real fun guy to hang with.