re: sunridge $40% stake is worth $64million
One reason why Sunridge is making an offer could be because a clean consolidation of Asmara into one name is more acceptable to the Canadian share market and also because financing could be easier later on.
Lundin Mining, a base metal producer, has recently acquired 10% of Sunridge. LUN.ASX is CAN$22.15, so presumably this stake could increase later on by financing Sunridge.
LUN is a well known zinc producer and Asmara has zinc.
I would think that both Sunridge and LUN would prefer the Asmara offer be settled reasonably quickly so it is owned 100% by Sunridge and making it more attractive to LUN also.
They don't want to see the water muddied by someone else jumping in; although that chance may not be so great, it is still there.
Settling this will mean that Sunridge's share price could increase while any further Announcements re LUN will also be most welcome.
Summarizing, there are a number of factors playing a role here. We need to wait and see how important these deposits are, also.
Gerry Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.
SBS Price at posting:
0.0¢ Sentiment: None Disclosure: Held
