It looks like MacBank wants out from its investment or at least felt there was some value to them from the takeover. Perhaps the low gold price has had an impact in making the Asanko deal more attractive.
The 79% premium is illusory if you are a long term investor and believe the POG will recover in a reasonable timeframe. It just reflects the fact that the inground value of gold has fallen to a small fraction of the market value of the companies and both companies have for the most part been valued on the basis of their cash on hand, with Asanko's higher cash level resulting in the premium.
I have no idea if building the mine now is a good idea given the low POG. One would need to see the costs/IRR etc.
Asanko will not be listed on the ASX so they are going to give current holders a chance to sell out to an agent.
If the POG recovers somewhat and production reaches 400k ounces pa then at some stage in the future those investors who took up PVM's rights issues will eventually get the chance to recover their money. Perhaps that is why MacBank has gone from opposing the merger to being a supporter.
loki
PVM Price at posting:
30.0¢ Sentiment: None Disclosure: Not Held
