I think it's a smart move by WGX, their own stock is...

I think it's a smart move by WGX, their own stock is significantly undervalued/mispriced by the market, and they are offering cheap WGX pieces of paper to MGV shareholders to become part of a larger gold mining group. The synergies of capital costs/mills etc are all economically rational reasons for MGV holders to consider the deal.

Market sentiment in the gold space is terrible at the moment, but the AUD gold price is actually ok, it's just capital costs and operating costs that are putting pressure on margins. Money is no longer cheap or easy to find so may as well get some cheap high-grade gold near your existing mills.

If a spoiler bidder gets flushed out of this, then that just demonstrates that MGV and WGX shares are mispriced and WGX is getting a bargain. WGX is going to be an interesting company in that its perceived as a "Shit Co" Gold Mining company with nothing special in the way of assets or orebodies but will have an economy of scale and a large production profile of ounces. This also makes them a bit "takeover-proof" as any future consolidation in the industry will present any predators with the problem that it might want some of the WGX assets but may want to dispose of other parts, so its not a clean transaction proposition for any predator. I could see WGX picking up little bibs and bobs in a slow methodical manner with targets being companies with gold in the ground that cannot stop drilling and/or gold companies with who come unstuck with high overhead costs and cash flow crises in this inflationary cost environment.