march qtrly, page-19

You could be on the money there Sammyjh, with your comment about BSM's Hellyer plant. I heard a rumour recently that there could be some sort of deal being discussed between UML and BSM, and although there's no confirmation of any discussions taking place, BSM are heading towards becoming a major gold and silver producer, in addition to their zinc and lead production. As you say, they have plenty of spare capacity at their nearby Hellyer plant, and there was a suggestion some time ago that BSM were interested in the Henty mine. It might be just a coincidence, but BSM used to hold the Tullah tenement which UML now hold.

If UML are buying back small unmarketable parcels of shares, and having got Kangaroo Flat on C + M, it might be that they are clearing the decks ready for a merger or takeover, and BSM look to be the most likely suitor. If so, UML holders might be in a for a win, because BSM are genuinely one of the most undervalued stocks on the mining boards - excellent management, high-value base metal and ag/au deposits, fully renovated high-capacity mill, and a large scale tailings project in the offing, likely to produce very significant quantities of silver and gold at low cost.

If a deal could be done for for BSM to take over UML at say 1 BSM share for 3 (or 3.5) UML shares, the Bendigo/Unity holders would at last get some value and reward for their loyalty. Even though I said I would never come back into this stock, I think I might buy a small parcel at around 8 cents - well worth a punt. I still believe that there is probably a lot more gold at Henty than has so far been proven.

Disclosure - I do hold BSM shares.