From the SBM AGM Bob Vassie was quoted as saying the investment...

From the SBM AGM Bob Vassie was quoted as saying the investment in PEX was "not passive". Furthermore, the non exec Chairman Timothy Netscher stated as follows;

"We have some promising regional exploration programs in both WA and New South Wales and after appropriate due diligence on a number of opportunities, we have made some strategic investments in companies with exciting exploration programs. With the Company in a strong financial position, we are also in a position to look at inorganic growth opportunities. We have a systematic and diligent evaluation process underway and we will consider sensible inorganic growth where it increases shareholder value."

I heard from a confidential source that SBM sent personnel over to Cobar prior to the PEX AGM.  I interpret that to be part of the "systematic and diligent evaluation process underway" for "inorganic growth" opportunities as described by the SBM Chairman.

A lot depends on the opinion of the SBM technical team doing the due diligence. If they form the view that there is genuine potential for a tier 1 world class deposit at Southern Nights/Wagga Tank and are  impressed by the remainder of the project pipeline then I see no reason for them to delay making a takeover offer. Such an offer would need to be lucrative enough to entice Peel shareholders to accept yet would offer SBM shareholders major upside on future drilling success. If we are fortunate enough to get an impressive set of results later this week pushing the share price up to 70 cents then the Peel BOD would have to give serious consideration to an offer of $1.20 per share which would value Southern Nights/Wagga Tank at $200 million. The longer SBM wait the more expensive the price tag. They might be considering making a bold offer sooner than later. Whilst the Peel Board consider such an offer one hopes that the drill rods are still spinning and with visual results giving them cause to outright reject $1.20. All my conjecture of course.