Take physic, pomp

San Gold (SGR.to) and Kerr Mines (KER.to)

Not really my usual stomping ground way up North, but the news today demands a little recognition on the blog and a general comment of WHAT THE FUCK????
Lemme get this one straight: In June the ex-CEO of Kerr Mines joins Sans Gold as its new CEO. Then a month and a bit later, Sans Gold decides it’s in the best interest of it and its shareholders to join forces with a company that has 1.3 billion (with a B) shares out, no cash, and has been melding itself together with other no-hoper Moose Pasture owners like Bear Lake and American Bonanza (that last name a particularly ironic choice). Ah, whatever happened to the heady days when Rice Lake was the new Red Lake…
That phrase occasionally used on these pages about how you gringos will buy anything comes to mind today. Applicable in spades.

UPDATE: Brian Quast of BMO today sent out one of the most succinct and wonderful notes to clients I’ve seen for a while regarding the deal. Here’s what he said (yup, it’s the whole thing):

  • Kerr Mines had a cash balance of ~$4M vs. ~$5M in debt as of Dec. 31, 2013 and currently has a market capitalization of ~$40M. BMO Research will consider valuation impacts when the definitive agreement is executed and the exchange ratio is set.

Brevity is the soul of wit. Nicely done, Quast.

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