Post by
frances1 on Aug 18, 2021 10:50am
Here is the deal by PAAS for LUM
Here 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!