Aquiline Resources (TSX: T.AQI, Stock Forum) shares raced $1.05 or 19.2% higher to $6.52 after the silver miner reported that Pan American (TSX: T.PAA, Stock Forum) would make a friendly takeover bid to acquire all of its issued and outstanding shares. The offer values Aquiline at $7.47 per common share.
The posters on the Aquiline board took the opportunity to have a closer look at the deal.
“It;s a nice takeover premium but is it enough?,” wondered ovis, who admitted that he was new to the board.
“Looking at distribution of companies by ore value and market cap per ounce of silver equivalent
https://www.goldminerpulse.com/silver-chart-ore-value-250.php
gives a bit of an insite [sic] into this deal. The chart is pre deal (close on Oct 13th), with the take-over as outlined, AQI would be roughly lined up with [Paramount Gold and Silver] PZG which on a first pass seems fair enough. But AQI holders could argue that premium has moved AQI to a reasonable valuation and doesn't really represent much of a premium.
“This seems like a smart move for PAAS since I don't think many of the other larger undeveloped silver deposits are available -- Prognoz has Russian troubles, Rock Creek and Montanore in Montana USA have permitting problems and Cornani in Peru has crappy grades -- 40 g/t silver stuff.
https://www.goldminerpulse.com/silver-mining.php
“So although PAAS is an excellent company to hold, it does seem like they are grabbing AQI for a very cheap price.”
Aquiline is developing the Navidad silver deposit and the Calcatreu gold and silver deposit in southern Argentina.
But since the share price stayed below the deal’s valuation, argued derekcs, the Street must not think the offer undervalued the company.
To which, ovis countered that because it was a share deal and Pan American’s shares were trading lower, today’s result wasn’t going to be the end of the rally.
