WGX 0.00% $3.05 westgold resources limited.

Had a little think overnight and thought about all the...

  1. 2,371 Posts.
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    Had a little think overnight and thought about all the co-incidental things which have happened over the last week or so.
    *Everything from here on is pure speculation by me and with no evidence to support any thoughts I may express here*

    1- Firstly the large increase in shorting of WGX

    2- Secondly a printed rumour that a major holder of SPR wanted out but wouldn't take less than a $1

    3- Then RMS playing its little game with WGX over the 12 mo. non-disclosure agreement. Wasn't bothered until NOW???

    4- The continued rise in SPR shares on no news

    5- Then soon after WGX spending $6m on 15% shareholding on a pit ready for development and profit share with another party announced quite quickly after RMS makes its play.

    All most likely have no relationship to one another.

    1- I started to wonder could the high level of shorting relate to a leak of RMS's plans OR is could RMS be looking to secure more high grade ore from somewhere close,or is someone wishing to see its potential competitor or the merger partner of Karora disadvantaged.????

    5 - If that was the case then WGX's latest deal for $6m gives it 50% of the profits from the pit plus 15% of the profits its partner accrues as a shareholder plus a takeover block.I would call that near enough 60% of whatever money is to be made from said pit.

    2-3- SO - WHAT IF the standstill agreement was NOT just between WGX and RMS exclusively on each other but also included a mutual standstill as far as making a play for shares in SPR?

    It could be a fair assumption if both companies were initially investigating a mutual bonding of operations and future Murchison consolidation.

    Should that be the case then coincidences start looking more relevant and of course a company that lives on buying high grade ore may decide it might like to accrue a 15% blocking stake for some stray cash to sit at the table on what happens to that ore once its Karora option expired.
    What do you do IF you can't for 6 months and those shares are being touted NOW????
    Throw a Hissy fit maybe????

    5 - Then you could read the timing of WGX's latest deal is a stick you,if you follow i.e. $6m for its 15% and 60% of the profits -beat that Mr.deal maker.OR a simple we know your after a 15% stake,or it could mean absolutely nothing of that kind at all.

    DYOR + DYODD These are just night time musings with no corroborating evidence just a hyperactive mind.
    I hold none of these companies shares currently and as I have said before when I was a shareholder of WGX, I wouldn't play Chess with WB if I could.

 
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