Quote:- 'I think we will see a lot more M & A activity shortly and this may be the factor that gives a much needed boost to the market. Our bigger mining companies are making bucket loads of cash at the moment and there could be some very good buys out there for them. It is going to be cheaper for them to buy reserves/resource than go out and find it.
A lot of these Juniors have very good projects in advanced states and are undervalued. View itself must be considerd a target. I wonder why Mincor is so keen to Joint Venture with View in the Bronzewing area. Don't be surprised if they want more than just Carnilya Hill from View. Mincor have stated they are looking for aquisitions and want to diversify into other minerals rather than depending on Nickel. Food for thought.'-:End Quote .... ROBOSHAN
*Robo, I must admit I had (still do) thought about future M&A activity as far as View is concerned, and anything is possible. MCR are obviously keen on the View operations and set-up because they remain joined at the hip with them even after the Carnilya Hill Sale. Glad you thought the same there.
If MCR wanted a new fully operational and multi-faceted mining facility for example, why would they spend way in excess of A$100M, and wait years for construction to build one in the future. Views current total market cap is under A$100M and the VRE Bronzewing Mine Facility alone is said to be worth way in excess of A$100M to replicate/replace.
It's fully operational, fully staffed, and presumably now running at maximum, or close to, capacity. MCR is continually expanding it's teeth in the Kambalda region - and Bronzewing is very strategicaly placed after all. Theres also the matter of some 1,500kms. of prime quality and proven, yet largely untapped, Yandal Belt Bronzewing tenements to be taken into future exploration consideration.
The market obviously doesn't currently rate the VRE A$10M revenue per month on 10,000ozs. of Gold produced at the best P/E ratio you'd hope to find for a junior miner, nor obviously the projected 805,000oz. Gold Reserve (presuming the inferred/indicated category is proved up as well).
But I reckon if MCR duly find Nickel on Bronzewing tenements, at good grades and lot's of it, something like a full Takeover could be well on the cards. If anybody can - they will!
Keep the ears open - anything is possible this year!
wrxsti
VRE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
