Peter Kerr has been specific in stating that an in stating that an aquisition would be a project that is near shovel redy. Recently Peter Kerr qualified that statement even further by adding a timeframe of 12 months to have in to production.
I doubt we will overpay for several reasons.
1. It is well known in the region that MGX is cashed up, so much so that entities are lining up to approach MGX, such as Golden Valley wanting to discuss a copper project with Peter.
2. MGX have remained extremely tight lipped about which companies that we already have an investment in . . . which would aid in negotiations by being able to play one off against the other (as the great deal maker says . . . MGX are holding the cards).
3. The BoD has recently described the current dynamics to aquire are 'opportunistic"
4. The absence of any panic / urgency indicates that the BoD are calmly lining up the ducks for a smooth transition.
5. Prior QRs have stated a focus in WA, of which our exploration tenaments and previous mines lay in the midwest, where we are a major shareholder of FEX who are rapidly growing through acquisitions in the midwest region. Both Peter Kerr and John Welborn have both stated that they look forward to a project together. An aquisition in the region would allow for Peter to retain much of the current workforce which Peter often has described as lean and keen, as well as having a good report with local indiginous people. From the videos on YouTube the workers at KI seem very happy working for MGX. An aquisition within the region would contribute to a smooth on transfer.
6. We have several possible acquisitions on the table being critically examined . . . we are in the position where we can pick and choose.
7. Today's announcement is now referring to LOM of KI in "months" indicating that an aquisition is getting close.
8. Peter Kerr's experience as an accountant, CFO and mine manager would contribute to the critical examination of the costs involved in an aquisition.
9. Possibly much of our current. plant could be utilized in an aquisition
MGX Price at posting:
32.0¢ Sentiment: None Disclosure: Held
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