I have no objection to SBM selling its highly prospective base metals tenements to IGO for $100m (lol) - that would boost our share price up at least another $30 cents.
I do not think IGO would get SBM for a crappy 30% premium over its current price. We can all see its going to go a lot higher than that.
Do you think they would pay $1.20-1.40/share for SBM and take on its debt?
IGO does not have the cash for a full takeover - they would need to borrow more and that along with SBM's existing debt would tie them down for years.
I do not want IGO shares which are fully priced, if it were a takeover with IGO shares. I suppose I could sell the IGO shares.
I am in this game because I believe in a higher gold price in the longer term. SBM is the far better play at present.
I think its a storm in a teacup due to media rumors.
What will actually happen is that SBM will find a base metals lode 10 times larger than SIR and with a share price at $10, it will acquire both SIR and IGO to start a new global mining house. SBM shares will ultimately get to $200 at which point BobbyV will make a titlt at his old stomping ground, yes RIO. Ok, I know I have a touch of sun and the grog is doing me in.
loki (goldmadness does this to you eventually)
SBM Price at posting:
57.0¢ Sentiment: None Disclosure: Held
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