Joshrichy I think evyone agrees SLR may be getting Phillips River Gold Project (Kundip, Trilogy, Queen Sheba etc etc) very very cheap. But this week PRH shareholders for a short while might have been feeling a little happier with the share price of SLR shares rising and making the merger offer looking "slightly" better. However a reality check by the end of the week when the share price retreated on the back of Ord Minnett's note of caution about SLR's runaway valuation.
So PRH shareholders must understand they really won't know the value of SLR's offer until the deal is done and then they will have to be prepared to ride with the value of their 0.088 SLR shares or sell out. So who knows we might be getting $15M or less for PRH or $30M.....that is how it is with a shares only based offer.
Again this week we see another WA gold mine get snapped up by Ramelius Resources. The deal is for $10M cash plus royalties for the 146K oz (indicated resource) in the Vivien open pit in Gold Field's Agnew Gold Mining Ltd tenements. PRH shareholders might ask why then is SLR's offer compare for PRH's 620K oz (indicated resource). Of course things such as grades ease of mining the ozs come in to it but I am reliably told that the Vivien deposit is no easy mining operation and why Goldfields is prepared to sell it off after spending a lot of cash on it over the years.
So it makes PRH's indicated gold resource look cheap and that is throwing in the other stuff (base metals and extensive territory) for nothing.
PRH Price at posting:
2.5¢ Sentiment: Hold Disclosure: Held
