Doesn't look that comparatively cheap to peers. Agreed. No bidder for MGV or its assets has been flushed out yet..and were one to be interested they would have declared their hand by now ...in my opinion. So the MGV directors will soon be obliged to lodge their Target Statement. They must now be grappling wit this obligation : The target’s statement must contain, among other things, all information that holders of bid class securities and their professional advisers would reasonably require to make an informed assessment of whether to accept the offer under the bid. The chart thoughtfully provided by Joelstar reveals the nub of the problem. MGV shares at 30 cents are already fully valued. Yes there are some punters- with 5% of MGV's capital- paying 30 cents which are holding out for a superior offer. However with now no visible route to commercial production and with the present languor in gold developer stocks it's more than likely that MGV shares return to their pre bid level ....22cents...in the event that WGX withdraws its offer. I wont be surprised to find a majority of MGV directors recommending the bid - as it is presently cast with no cash- in the upcoming Target Statement. . They've got just 2 weeks.
WGX Price at posting:
$1.35 Sentiment: Buy Disclosure: Held
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