Brancote Up for Sale...? (BNC)

178P? In MDG paper:

178P x $1.43 = $2.5454 / 0.1886 = $13.50 per MDG Share
Recent Calculation: $16.00 / 1.50 = £10.67* 0.1886 = 201.1 P
But there has typically been a 1-2% discount, so x.98: 197P

Meridian Gold (MDG) is a Bellwether for Gold Stocks:


A Short Term (10 Day) Look:


News on MDG (Yahoo): http://finance.yahoo.com/q?s=MDG&d=c&t=3m&l=on&z=m&q=l

Original Comment:
BRANCOTE FOR SALE / What to do about exploration upside??
----------------------------------------------------------




WHERE IT STANDS - A GUESS...
----------------
Been hearing rumours and based upon those, here's where I think this stands. Brancote has a bidder prepared to pay 170p, which they will announce soon. Management would rather come out with a price they can recommend, such as 240p, but that is unlikely, unless a bidding war starts.

The real problem is that the bidder does not want to pay for "blue sky" and BNC management doesn't want to let the great potential for more discoveries go too cheaply.

There is a solution which i would propose if I were running the deal. (BNC management, how about a consulting contract?) Here's what I'd do:

Let the Esquel ore body go for 180-200p per share which could be paid out to shareholders. The buyer then does a farm-in on the remaining properties, agreeing to pay for drilling costs. In return, they get a 12 month option to buy the rump of the company at 40-80p.

And if exercised, then: 200P +80P= 280P, but only if the
drilling results are good.
CAN WE MAKE A DEAL??
Latin American Mining News: http://www.bnamericas.com/subscribe.html