Why Wait???, page-3

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Andyrooooooo

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29/12/16

10:36

Post #: 21588167
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Originally posted by ozblue ↑

Hi everyone, and again congrats to BGS holders. I've been looking at the announcement again and trying to work out why there is a trading halt on at all.

"1. The trading halt is being requested pending the announcement of a company update including an offer received for its Lithium asset.

2. The Company requests that the trading halt continue until the earlier of the commencement of normal trading on Friday 30 December 2016, or when an announcement is made by the Company regarding the above material transaction. "

The company had obviously received the offer before the announcement, so I'm wondering if they have been waiting to see what the shareholder reaction is, before making the announcement on what they will actually do.

I can't think of any other reason for not announcing what was offered straight up.

The only similar situation I can think of was back when Altona sold their mine and gave a distribution to shareholders instead of spending the money on their other project. But they did have another project to go on with.
In BGS's case, they will be left with a whole lot of cash but no project. However they will have the cash even after paying a special dividend, to spend on some new good tenements and do some fast serious research on them. So another project will arise within a few months, and it need not be lithium or gold, but could be other metals currently in recession, but have future potential.

Without even knowing what the price will open at after the announcement, even if the number seems poor, IMO the company will be a buy, so again well done holders.

Thoughts??

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They hinted in an announcement just before the AGM that there was a potential interested party.

After questioning them about this, they gave little info.

So its no surprise that management has been in talks with some "folks".

BGS Price at posting: 33.0¢ Sentiment: Buy Disclosure: Held
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Why Wait???, page-3

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