Lots of *if*s there and *if* Glencore/IBG were interested, I expect they would want it for less than 15c and hence would prefer that OVR management officially put the project in abeyance (as the share price is indicating they are about to) and write off the exploration spend prior to making a low ball offer. But they might just try an overinflated IBG for OVR scrip offer given that IGB hasn't been smashed and OVR is down 90 odd percent. I don't want IBG scrip, I would rather take the cash and take a 70% loss on this circus, this billion dollar deposit trading for a net $2 million than more scrip in a connected company. Having enough problems with OVR scrip due Paradigm just to switch to a puffed up IBG scrip only to have that then potentially pressured down 90% afterwards for similar corporate reasons.
Of course, Glencore might just be happy to see this trading at 2c for the next 3 years to prevent the project being progressed/developed and new mine supply interfering with it's control of the Zn metals surplus.
If that is the case we are stuffed mid term and will have to wait it out. But it could always be worse, imagine if they then reversed some dodgy Indonesian coal asset into this for a billion shares at one tenth of a cent (to vendors and management). Seen that before in a linked company; ex KML.
But you have to hand it to the Paradigm clients. They are tenacious sellers! Sell a couple of hundred K, step it down 5%, sell another couple of hundred k, step it down another 5%...ad infinitum. Eventually we will all get to the point where we will jump on any ragged bone thrown our way and tear each other to shreds in the process. American hedge funds!
OVR Price at posting:
3.0¢ Sentiment: None Disclosure: Held
