Chelkn Thank you for your commentary, over the weekend I have...

Chelkn

Thank you for your commentary, over the weekend I have taken a more in depth look at Crusader and noted that the highest market cap reached was in 2011 when it hit £75m, the lowest being December 2016 at £21m.

I wondered as to why the CAS share price has not appreciated on the many positive news releases over the last 9-12 months, yes it has been range bound 10c to 13c, this is what worried me as I considered the Stratex offer of 50% premium on CAS and pitched at the lowest Stratex share price for 12 months to be poor for Stratex shareholders.

Most Stratex shareholders are in above 2p, to attain 2p the new company would require a market cap of £50m, currently CAS has a £21m m/cap. That assumes no more dilution post the deal completing.

On closer inspection I see that it is possible for the combined group to potentially bring near term low cost gold production IRO 30k-40k ounces pa, that would clearly drive a re-rate, something that the last published broker note on CAS re-iterated.

I contacted Stratex a few days ago expressing my concerns, the shares have fallen to an 18 month low at 1.35p, the market seems to be taking away the CAS premium, they were 2.25p in December. I received a reply which suggests that if the deal completes the new Stratex/Crusader will be aggressively promoted and they believe the new combined group will deliver 'material value' for shareholders.

I guess many Aussie investors have no idea about the AIM market but IF investors take a liking to a company the re-rates can go beyond existing shareholders wildest dreams, it is not uncommon for 4x 5x gains.

Another aspect of the reply from Stratex was that much more information will come out if the deal concludes, who will on the Board, what are the immediate goals etc etc. There is a Stratex presentation in London on the 29th June.

For the time being I am happy to sit it out and wait for more information, DD concludes next week. Your post has assisted my research thank you for that.

No advice intended