Victoria Gold Corp VITFF

My Take

[MVargas]

Orion is anxious to crystallize their gains in Victoria shares and don’t want to wait around for Victoria to become a 250k oz/year producer.  The only practical way to do that is via a takeover offer of Victoria by another company.  Therefore they agreed with Coeur to part with 11 million shares for less than fair value in order to facilitate a takeover bid by Coeur Mining with the knowledge (or at least expectation) of an intent by Coeur to make an offer of all outstanding Victoria shares at a much higher price.  Certainly based on the wording of Coeur’s press release and Sedar filings, a takeover would appear to be a question of not if but when.

This was somewhat of a coup by Coeur as it gives them a leg up on any potential competition.  They can afford to outbid any other offer because they already have 17.8% ownership at a price that will be less than any competing takeover offer.  If they get outbid, then they made a tidy profit on their 11 million shares.

Although Orion is obligated to tender their remaining shares if the Victoria BOD recommends acceptance of any Coeur bid AND enough shareholders agree to accept Coeur’s bid that will result in Coeur owning a minimum 50% of the all outstanding shares, they are able and will happily tender their shares to a higher competing bid. 

And so while owning 17.8% of Victoria shares gives Coeur a bit of an advantage, it is not sufficient to discourage other bids if they can make a higher takeover offer. 

The key is still the BOD and what they are willing to accept and when they will entertain any takeover offer.  It is likely that they will want to prove up additional resources this year before considering any bids, but who knows?  If Coeur were to offer say $18 - $20/share tomorrow, would they reject it out of hand? 

I’m sure there are many in management that would like to crystallize their gains too and enjoy a substantial windfall sooner than later. 

[Welland]

I am surprised that VGCX's share price didn't increase more today. This take-over by Coeur of 17% of Orion stake clearly indicate that VGCX will be bought out by Coeur or by another suitor. Today, I increased my position in VGCX since I beleive it is a no brainer at these price level.

[Whvcgold]

Good post MV

[OCB1234]

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[Human7]

I believe Victoria thinks they could easily get this share price from any suitor later this year, so to do this deal with Coeur it has to be as a set up to get more. CIBC and BMO put in $50 million each at $17 a share in Sept 2020. You gotta know they want to make some coin and need to be placated as well. OCB123 suggested it puts Victoria in a stronger defensive position from takeover by a

[OCB1234]

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[Zeke2902]

I continue to believe $30 plus is the number that makes things work for ownership/shareholders. The company is extremely new as far as commercial production is concerned and have had a few stumbles along the way as far as their buildout has gone...growing pains. They have a stated goal of 250k ounces per year with the current resource, they are still drilling to discover additional gold both

[OCB1234]

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[Zeke2902]

Tough to deal with mosquitoes in the backyard.....they just keep trying to ruin a good party OCB. The thing is life keeps moving along at a good clip for investors who are informed and positive without any bias for influencing any other investor.   Time for Victoria to move on up...I stand by my estimates and "my buddy" will have some trailing comments where he has predicted the

[slamdunk]

If Coeur get over 50% Orion gets back 75%of"The Spread " thats between the 13.20 sale price  and share price  for that they agree  to support Coeur with their remaining shares  and influence .Coeur needs approval of 50% of Board...This will be paid with Coeur shares up to their 300million outstanding limit  and the balance in cash.. This is Orions game But i

[Goldmann2020202]

It's common for large gold companies to buy pieces of smaller producers or developers before buying the whole company. Buying a small stake in a company acts as a blocker, dissuading other suitors.

[OCB1234]

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