I get an inkling that the shadow of Silvermines still hangs over...

I get an inkling that the shadow of Silvermines still hangs over this company.

Consider the timing of the recent announcements relating to the entitlement offer, for example.

The Thomson trading halt announcement was put out on Monday the 13th of February. The previous Friday, Silvermines announced that they had just completed an $18 million capital raising.

Silvermines, of course, is still a major holder in Thomson, as was indicated in that previous article.

Given the curiously correlative timing, it is hard not to shake a suspicion that there is is some kind of connection between the Silvermines capital raising and the Thomson entitlement offer.

Is it possible that Silvermines might be looking to take out Thomson?. Remember, Silvermines sold them the Webbs and Conrad projects at the end of 2020. The following year, Silvermines sold off a large portion of their TMZ shares at a much higher price, when the share price was well above the 0.05c mark.

If they made an opportunistic move on TMZ in the near future, they could potentially buy back Conrad and Webbs for a fraction of what they sold those shares for, and they'd be getting the Harry Smith and all the other Thomson gold projects as a bonus. Not entirely unlike a 'buy one, get one free' deal', and at a discounted price, to boot.

It makes me wonder if this is why Thomson sold their Bygoo tin project for a pittance, and only a week after they were spruiking drill results at the project. Perhaps the Silvermines management have indicated to the Thomson management that they are only interested in gold and silver? Is it possible that the mysterious buyer(s) who have been soaking up shares over the past ten days are somehow connected to Silvermines?

If Silvermines did end up taking over Thomson for less than 2c it wouldn't be a good look for the management of this company, that's for sure.

However, the possibility of a takeover by Silvermines is one reason why I think shareholders should try and take part in the entitlement offer, assuming they are able to stump up the cash.

When I cast my mind back, I can think of another reason as well, relating to the history of the company.

Late last decade, the TMZ share price hovered in the doldrums for years.

The prime agent of this listlessness was a major shareholder at the time, Variscan, who would dump stock everytime their was a bit of fire in the TMZ share price. When Thomson finally managed to shake Variscan loose, the share price took off. rocketing from under 2c to 10c in the space of six months.

The reason I mention that is because I've been keeping an eye on the transactions that have been taking place over the past ten days, and the pattern of selling suggests that some institutional investor has been selling off. I suspect their largest holder, Lind, is probably the culprit.

If my guess is correct, and Lind do end up dumping all of their shares, that would probably pave the way for a sudden share price rebound, like we saw in 2020. Given how low the share price is, mere points from the bottom, this could happen with great rapidity.

Some of the past decisions made by the management of the company leave you scratching your head, but all the same, I think shareholders need to be careful not to get too caught up in the past, as right now it does look as if there could be considerable upside for the share price, and especially for shareholders who are able to take part in the offer.