Sunday, October 16, 2011

October 14, 2011 Edition of the Stateside Report


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2 comments:

Worldly Trader said...

Despite what is happening in the stock markets world wide, there seems to be no end to mergers in the junior mining sector. There are two new mergers today.

Geo Minerals Ltd. (GM) was up by 29% on news that it will be acquired by New Gold Inc. (NGD) for .16/share and for 1/15th of a common share in a new exploration company.

New Gold is at it again on the merger front. NGD will acquire Silver Quest Resources Ltd. (SQI) for $1.32/share, which is a 52% premium of share price of October 14th. Also each Silver Quest shareholder will receive .09 of a New Gold share for each Silver Quest share held. Silver Quest was up by 28% on this news.

They both sound like great deals. I think with all these mergers happening and seemingly unnoticed by analysts in the U.S. or Canada we will have a much smaller pool of juniors to choose from in the coming year. It could be that when the venture market picks up again there will be a mad rush into the remaining outstanding companies in the market.


Anyways congratulations to the shareholders who have made out on these two deals. At least this proves the shares in promising junior exploration and mining companies have some value even if the market is throwing them away.

stateside said...

Hi Wordly Trader,

You stole my thunder LOL. Yes...there are many good stories and unfortunately the majors/producers are the ones who are making out like bandits. Buying things on sale for 50-75% off. The majors should be sending checks to all of the newsletter analysts and institutions for recommending investors sell these juniors. It is saving the majors millions of dollars in capital costs.

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