Word on the street is that Portman and nominees may be in talks with Murchison Resources regarding Portman selling approx 26 million GWR shares to Murchison Metals at the same price of the recent GWR capital raising.
Murchison is cashed up after the disposal of it's holdings in Midwest Corp to Sinosteel, raising approx $135 million in cash.
Taking into account comments made by Murchison in their ASX release on Thursday regarding the disposal:
"Proceeds from the sale will be used primarily to help develop the Company's existing projects."
"The cash raised from the sale gives Murchison greater flexibility in relation to both developing existing projects and in pursuing fresh opportunities, said Mr Paul Kopejtka."
and GWR's higher grade resource base, locality and strategic alliance with Yilgarn Infastucture Ltd, Murchison will be keen to consolidate their position as the leading player in the Midwest iron ore region before Sinosteel launches.
IMO, bye bye Portman, hello Sinosteel and buy buy GWR/Murchison.
MIS Price at posting:
$6.38 Sentiment: None Disclosure: Not Held
