gravelman - how is this possibly a scam? RED had long been...

gravelman - how is this possibly a scam? RED had long been regarded as a potential takeover target once it got its King of the Hills mine up and running and got over the initial cashflow issues involved in commissioning the mine.

SLR made a clever move to acquire a blocking stake and then more recently organised a takeover of RED via the "merger of equals".

What's more, by making it a scrip bid, SLR protected itself against a dramatic move up or down in the gold price up to the end of May. It also structured the deal so that only its own shareholders got to vote.

But, clever as these moves by SLR and its advisers seem to be, I have to agree with Jameshunt regarding the price of the entity going forward if the takeover is successful. Both RED and SLR seem to have outperformed most of their peers in the listed gold sector of late. I wonder if RED has gone from way oversold 12-15 months ago to somewhat overbought at the moment.