Absolutely correct. KCN is currently $11.33 meaning the bid...

Absolutely correct. KCN is currently $11.33 meaning the bid values LRC at nearly 2.2 cents.

I have been buying LRC shares:

1. It is a cheap entry into KCN, now Australia's number 2 gold miner after NCM.

2. There is the possibility of a counter bid and KCN having to bid up which if it eventuates I am confident KCN will do - they haven't forgotten about missing out on AND by not upping the original bid enough, plus the number of additional shares KCN might have to offer is irrelevant from a dilutionary point of view for KCN.

3. As has been pointed out, there appears to be significant exploration and development upside in LRC and LRC is being valued at only around a token $22 million by the bid which looks like very inexpensive in ground gold to me.

4. At these prices LRC is extremely cheap and the KCN bid has effectively given a vote of confidence for LRC's gold assets.