IKN

idle and fond bondage

Hey, wanna know what the Can of Corn thinks of the Timmins (TMM.v) bid for Capital Gold (CGC.to)?

Sure. Can of Corn thinks this:

Timmins (TMM) to buy Capital Gold (CGC) – quick take…~$275mm deal
 
– Hostile,  non-binding proposal. All stock – exchange 2.27, 26% premium to 20 day vwap, implying a C$4.50/share value. TMM has 17% of CGC share holders locked up.
 
=>   VIEW: apparently Gammon Gold (GAM) had a look  at CGC in the last 10-20 months.  Additionally, CGC’s B.O.D has not been receptive.
 
– AGI, GAM, BTO & NGD operate assets in the region – this suggests further optionality for a higher bid
 
–  TMM would have some of the lowest valued paper of the group, and would probably get trumped in a competitive situation
 
– This acquisition does makes sense for TMM as they have producing gold mines in Sonora State , Mexico – similar to CGC.
 
 =>  Once we have more info/details (ie. valuation metrics etc.), we will  forward

DYODD, dude.

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