Agree with what you have written RoyE.The offer is 1DCN =...

Agree with what you have written RoyE.

The offer is 1DCN = 2.7NTM. Currently DCN = 35.5c so NTM share is valued at 13.1c.

NTM has SOI = 693 100 000 and cash $5 215 000 for an EV of $85 914 815.

Its resource is 679 000oz at 1.57g/oz, so EV/oz = $126.59

These calcs don't take into consideration your correct view that high grade is worth more.

MGV share is currently 42c, SOI = 475 000 000, cash = $8 227 000 for an EV = $191 273 000.

Now this is the tricky bit, what is their resource? The last declaration was 659 000oz @ 3.2g/t (Noosa presentation).

So MGV EV/oz = $290.25

NTM/MGV resource grade ratio = 1.57/3.2 = 0.49

So adjusted MGV EV/oz = 0.46 * 290.25 = $142.22 (compared with NTM $126.59).

But... all depends on any resource upgrade from MGV and MGV's resource is twice as high making for cheaper extraction.

Conclusion:

MGV is reasonably priced when comparing with NTM take over price with possible upside news moving MGV to a cheap price.