The gold plant looks like great value and as you have mentioned there is excellent synergies given the location. however the gold pit itself has been beset with problems in the past with dilution and grade control. Laiva are relying on the gold price to stay at these levels for a few years to overcome these issues which is not a given.
The other issue is price. With KRM trading at less than cash backing, KRM would need to issue too much script for Laiva at 40/60 ratio and i doubt the KRM Chairman, who owns about 9% would like that whittled down to 3.5%. Different story if KRM were trading at 8-10c though.
The gold plant looks like great value and as you have mentioned...
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