There a tough call because BVS holds together nicely as a resource but it's just that little bit deep considering it's grade so until a proper mining feasibility is completed its a gamble.
The major shareholder made a take-over bid for the company a little while back at 3.5cents a share but he couldn't get to 90% (compulsory acquisition level) even though their were veiled threats in the offer document to delist the company if shareholders didn't accept. Since then Mr Wallin has been acquiring all the low hanging fruit in small parcels as people get frustraed and give up. He has also largely been funding the company through the last capital raising but he shouldn't forget that smaller holders have also been contributing to these raisings.
He must clearly believe in the merits of this project or he wouldn't be desperately trying to buy every last share as cheap as he can.
Obviously not everyone is infallible so even he could be barking up the wrong tree throwing his money at dud. Generally however people with lots of money they have already made from mining don't fall into this catogory.
The risk here is that he does end up delisting it and then what happens to the small shareholders. They probably will just have to suck it up. I doubt he'll get his 90% without making a better offer to some of the hold out bigger investors who didn't accept the last offer.
Still a mystery what the plans are as I mentioned in my last post. The threats to delist the company have yet to materialise so maybe the plan is to keep developing until a bigger player comes along, eyes the value in the ground, and launches its own takeover. Impossible to say what will happen unfortunately. I just quietly hold and wait for whatever outcome.Esh
SMC Price at posting:
36.0¢ Sentiment: Hold Disclosure: Held
