My understanding (based primarily on discussion with Citigold's Chris Towsey) is that the intention of the takeover bid is not to completely swallow up GML, but rather to have a significant influence on GML board. The reason is apparently/allegedly so that GML can explore Citigold's rather large unexplored tenements adjacent Charters Towers (i guess under some sort of JV). This is a more cost-effective option compared to employing geologists, etc and raising additional money. Citigold can then focus on expanding the production (as continually promised).
Although the above seems a reasonably plausible arguement, I do have a feeling of unease regarding the take over bid. Surely, with so much doubt/angst/anger and pessimism towards Citigold, a met production target would instill some confidence and send the SP much higher, and thus making a successful take over bid a much more likely proposition (as we all know).
Best of luck to long suffering shareholders. Based on history though don't hold your breath on the Sep Quarter production figures, I know I'm not!
Cheers,
Ben
DYOR
Add to My Watchlist
What is My Watchlist?
