Perhaps MGV had a look at GCY and found too many skeletons to...

Perhaps MGV had a look at GCY and found too many skeletons to buy at the moment. A mill too big for the resources they have, high holding costs to bleed out cash, and challenging GCY shareholders unlikely to let go this cheaply (the same shareholder blocking the logical DCN takeover). The question should be why didn't GCY takeover MGV rather than shutting down? Did GCY work out the two couldn't sustain the operation? Is there something about MGV ore that doesn't work with the mill? No synergies other than the mill because of the distance and different fleets required? GCY couldn't make a return on the acquisition and takeover cost? Straight out of the gate GCY would be $70M better off by not building a mill. The difference in processing cost would offset haulage. It looks like WGX and GCY have a price to make a margin, and it is much less than MGV is prepared to take. Rather than sitting there clipping the ticket as some are commenting I would think the MGV management would happily get their options cashed through a change of control event out and then clip the ticket elsewhere.