Panoramic Resources have launched a $40m all script bid for Magma Metals which included nearby (to PRH) Lake Grace gold tenements. The bid is unsolicited and initially directors have recommented to take no action. Panoramic are keen to fairly rapidly grow their gold plays to diversify from their (what have been profitable)nickel mines. Very well cashed up $120m and very well positioned to raise capital to develop projects. Some well regarded mining people suggest that Phillips River would fit nicely into Panoramic's stable and they have the grunt to get it moving pretty quickly.
On a comparative valuation basis if Panoramic are prepared to pay $40m for Magma then the $20m SLR is offering for PRH looks a steal if they can get it past the shareholders.
So the question is will Panoramic look a little further east to Phillips River while their in aquisition mode.
Seems the all script offers are they way to go at the moment which conserves cash to get on with exploration activities. Any chance that PRH could wangle a reverse takeover of some cashed up entitiy. lol......I have a long memory and was caught up with the reverse takeover of the Duke Group (KiaOra Gold - Marvel Lock) back in the late 80's!!!!
PRH Price at posting:
2.7¢ Sentiment: Hold Disclosure: Held
