DGR need cash injection and I just read on ***** the following:-
Wednesday October 15, 2014 12:08 PM
Semafo Inc.’s (TSX:SMF) proposal to acquire 100% of Orbis Gold for roughly $150 million will go eventually go through, despite Orbis’ board of directors stating they felt the offer was undervalued. “Based on preliminary numbers, we believe the potential acquisition of Orbis could be more than 15% accretive to Semafo’s net asset value,” CIBC says. “Ultimately, we believe Semafo will be successful in acquiring Orbis, but we could see a share component added to the deal (currently all-cash). We believe Semafo can realize more value from the Orbis assets (versus Orbis as a standalone company.) CIBC also notes Semafo’s third quarter of 2014 production results beat estimates with 64,700 ounces of gold produced in the quarter and total cash costs to be $555 to $565 per ounce, also beating expectations. “Third-quarter production was encouraging and adds to the company’s track-record of meeting/beating guidance.” By Alex Létourneau of ***** News aletourneau@*****.com
If DGR accepts the cash deal (plus shares if offered), the Shareholders should receive some cash back (IMO), DGR will receive this of course plus the loyal SHolders (Me and others), I really like the prospects of ANW and AJQ, dont know a lot about NVG (but I believe Gina likes it). I would like to see Management improve the existing offer for the benefit of DGR and to provide some cash.
DGR Price at posting:
4.5¢ Sentiment: Buy Disclosure: Held
