If RF aim is to grow GMD into a bigger company and if he is in a hurry(which I think he is), then one can surmise that GMD needs DCN more than the other way around. Hence I would expect GMD will have to come back with a better offer to bring most DCN shareholders over the line. Hoping that it will be 0.15 GMD share but realistically that is very very unlikely.
BTW, DCN has $21.6M and together with the placement of shares to GMD worth $12.6 (I think), there is a total of $34.2M in cash. In addition the processing of the low grade stockpile would last another 1.5 years and that in itself is likely to generate another $6-7M/qtr or $36-42M of additional cash for the 1.5years. In total DCN would have $57-63M and if the burn rate on the exploration front is $7M/qtr, then there is enough cash to last at least 8qtrs before the cash runs out.
DCN Price at posting:
10.5¢ Sentiment: Hold Disclosure: Held
