PCL partnership

Was browsing the PCL thread yesterday, and despite their good news release about Namibia looking very prospective, questions are being asked about their ability to hang on long enough with their cash reserves.

I posted some thoughts about FAR picking them up on the PCL thread. The more I think about it, the more I like the idea.

Anyway, what would FAR holders think of a somewhat generous (100% premium on yesterday's close) 1 for 10 all scrip offer for PCL?

PCL - 1,151M shares @$.004 = $4.6M MC
FAR - 3,183M shares @$.08 = $254M MC

Issue 1,151M/20 = 115M new shares:
FAR has 3,183M + 115M = 3,298M shares
Dilution = 115/3183 = 3.6%

That's a 3.6% dilution to increase our WI in L6 and pick up a Namibian block with a free carried drill.

I think Farjoy is up to 11% now, so even with that dilution they would still maintain a blocking stake.

As a holder of both, albeit much more $ in FAR than PCL, I think it would be a great move. As I said in the PCL post, IMO the economies of scale would be compelling having just one head office/board/CEO and not having to maintain 2 ASX listings.

I'm guessing a lot of PCL holders also hold FAR, and also a lot of those probably now have an unmarketable parcel of PCL, could be a good chance to consolidate holdings of both.

Mind you in a few months a 1 for 20 offer might look generous.
Also, if PCL end up folding, we might pick up the PCL part of L6 for free.