Note - not a bad way to wake up in the morning and realize your investment yesterday of $40 million is now worth... double?LONDON (Reuters) - Latin American silver and gold producer Hochschild Mining Plc (HOCM.L) has made an all-share takeover offer for its joint venture partner Minera Andes Inc. (MAI.TO), Hochschild said on Tuesday.
Hochschild said it made a proposal on February 6 to the board of Minera to pay 0.22 of its shares for each Minera share, which valued Minera shares at 62 Canadian cents, a 100 percent premium to the closing share price on February 5.
Hochschild said at the same time, it made an alternate proposal to acquire Minera's 49 percent stake in their joint venture San Jose for $70 million.
Hochschild said it was making known the proposals following Minera's announcement on Monday that it had agreed a C$40 million ($32.73 million) private placement with Robert McEwen at a price of 33 Canadian cents per share.
Hochschild said its proposals expire on Wednesday.
(Reporting by Eric Onstad; Editing by Erica Billingham)
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4 comments:
what does this mean for a shareholder of mai?
Hello Michael thanks for your question...
I'm obviously wondering as well, but seeing RMX and UXG the last few weeks jumping 200-300% has me convinced he's not in the business of losing money. Your thoughts?
Check my latest article today, thanks for reading!
I totally agree with you. I had posted a comment months ago on your blog on another post regarding UXG. Back in November I purchased a quite amount of shares of MAI, TNR, UXG, SGR and LSG.
I have a feeling MAI will fare much better within the next few weeks or so once the financial issues get settled. Rob McEwen has the 'golden' touch per se in this business. I am sure Hochschild does not want him involved either, thus why the low ball offer to MAI.
Hi Michael,
Terribly sorry the late response - slipped my mind amidst all this market chaos.
MAI is a surefire winner - have you taken a closer look at the prelimenary assessment on SEDAR from Mar/19? MAI will need TNR's Escorpio IV from looks of things for their mine to opearte at $0.85/lb copper - you don't want to go uphill to dump your tailings!
UXG has done exceptionally well as well - I'm not sure why TNR hasn't bounced back yet but its a resilient group.
MAI, SGR, LSG, TNR are all excellent picks, can't go wrong. I'm a huge proponent for quality management companies - I believe its a better longterm play than comodity swapping promo guys who rollback and change company name every few years for a quick buck.
Thanks for reading!
Back in Nov eh... you must have made lots on SGR and UXG! Congrats!!
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