I suspect that WB does not want to give too much info away about the supposed benefits of the acquisition in case MGV shareholders want even more for this deal to ahead.
There is also the issue that WB has not done any due diligence in terms of accessing the MGV data and in any case what MGV has is a resource, not a reserve, so its all a lot of quesswork as to what is actually economic to mine and that may lead to litigation if WB can not deliver.
I am concerned about the lack of DD by WB and that much of the MGV resource may be over-stated to dress up a pig. I think a lot of MGV's tenements previously belonged to SLR which nearly went bust mining in that region. WGX owns the very old plant that SLR were using.
Does anyone know if the underground ore deposit is narrow vein, which is often very hard to estimate and results in significant grade dilution when it is mined (eg DCN's failed underground mine).
GLA.
loki
WGX Price at posting:
$1.47 Sentiment: None Disclosure: Held
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