bcn have recently announced plans to sell a high grade deposit to rms for a few million dollars (which simply recovered exploration costs) and a royalty..
sxg should bid 1 sxg share for 10 bcn shares and that would be a win win situation for everybody.
as it stands, bcn holders will end up (via the deal with rms) with a share, which has the equivalent cash asset backing - with a royalty (the share price did not move, upon the announcement) . as sure as night follows day - the funds will be frittered away - and bcn holders will have nothing, at the end of the day
the high grade ore from bcn is worth about $40m in profit. a takeover of bcn by sxg would give bcn holders about 25% of the expanded capital base.. but bcn holders would get equity in the total gold resources of sxg - and sxg would have a compelling argument for funding, from a bank.
a takeover by sxg would be worth about $6.5m in script - but add $40m of worth, to the combined entity and almost guarantee funding for a mill - and everyone would be a winner
SXG Price at posting:
6.3¢ Sentiment: None Disclosure: Not Held
