I see a lot of positives in this merger. Of course everything...

I see a lot of positives in this merger. Of course everything cannot all go SBM's way but in general I see a lot more positives than negatives. There are certain things which simply needed to happen.

1. Separation of the international gold mines (SBM maintains 80% control). All share interest in other gold miners/explorers is kept with this new company meaning there is and will always be a tie to the new company assuming of course that Hoover future T/O prospects remain the same in Leonora.
2. New company Phoenecian Metals to have zero debt and 85mil balance sheet due to:
3. Cash injection (275mil all from GMD which equates to 56% of Genesis’ existing shares on issue) essentially raising the value of GMD market cap from 490mil to 765mil approximately. Effectively 205mil of this injection goes to the new company Phoenician Metals to consolidate debt, pay for demerger and other costs for simberi and atlantic.
4. All SBM debt consolidated by the new company Hoover, 80milCAD repaid by hoover and 50mil to be retained by hoover.

What we get from this essentially is:

1. Consolidation of assets and plants at leonora to maximise potential of which:
2. Hoover initial estimates to produce 300k ounces p.a seems quite realistic with the resources and plants available.
2. Separate management of international assets with a strong balance sheet.

When I first looked at this merger it all seemed doom and gloom to me too as it appeared we simply are taking 1/3 cut in hoover. But even if you consider current production from Leonora, compared to future production, we are looking at almost 3x increase without factoring in all the future potential in the area.

Again, for me, I see a lot more positives here than negatives. But take this how you will, I am just a $10k holder in SBM =)