re: Ann: RIU Melbourne Resources Round-Up Pre...
You've got to think that gold producers would be mad to let the opportunity slip to take advantage of their high share prices and make scrip bids for undervalued explorers.
An SLR and AAG tie up makes sense on so many levels. SLR could use it's excellent SP to make a scrip bid that isn't too dilutionary to existing holders. AAG shareholders would get exposure to a gold producer while prices are robust.
Westgold would get scrip that is more liquid and/or seek to offload their AAG holding for cash to interested parties to fund their own ambitions.
Seems beyond sensible to me. What do others think?
AAG Price at posting:
23.0¢ Sentiment: Buy Disclosure: Held
