I think there will be a negative initial market reaction to...

I think there will be a negative initial market reaction to almost any acquisition announcement as there will be a group of shareholders that don't like it and choose to bail out. It could be a good buying opportunity for those with a positive view on the acquisition.

It makes no sense for a small cap miner to diversify across commodity groups as they don't have the depth of capability. In addition, many investors invest in these companies because they want a specific commodity exposure. If you want diversified exposure in one holding, better to go with the major players.

Grange is a good fit because it has a profitable long-life mine and attractive reserves whereas MGX only has one substantial asset with a short life. Both deal in high grade IO, so there are potential synergies in both the selling and operating capabilities.