whatever the case may be, from a technical perspective GMO looks like it is about to rocket.
Never say never. You don't know if TC won't buy GMO and I don't know if they will.
That said, both companies are based in Colorado. GMO has huge interests in incredibly moly rich deposits in Nevada. Hmmm, what state is miner friendly? I live in Colorado and for about every proposed mine, you regularily hear public opposition and in some cases, for good reason. But, in Nevada that isn't so much the case. So, imo, if TC were looking to acquire an interest in future mines that should have less permitting and PR hassles, ah and with a life expectancy of 40 years for the moly mine, with something like 1.8B pounds of moly and you could possibly get all of that on the relative cheap, what would you do?
Imo, it makes sense to try and aquire high quality deposits when the price is right (rather than penny stock companies with smaller reserves and possibly more hassles) and become the premier moly producer worldwide. All of this of course is imho, but saying something definitive on this issue is nonsense, we are all speculating and time will tell. At these levels, I prefer GMO over TC but would really like to see them join forces and become a moly super power. TC has raised hundreds of millions of dollars and looks to be ready to make some moves, so again, time will tell.
I'm beginning to think that CMS.V IS the target. They JUST cleaned up their balance sheet, closed a merger such that they have no loose ends. Their mine start up costs are half GMO's and they dont have POSCO and sales agreements to deal with that GMO has.
Mercator (the third possibiility) just transacted a $70MM/$26MM share finance deal for expansion. I dont think they would do that if they were about to be bought.
I think Bard Ventures could be on the radar if they expand their present resource size (currently only 200 million pounds M+I @.083% Mo)which they are actively working towards.Excellent infrastructure in place, and a current M-CAP of <$7.5million US:
Davidson will be abandoned. Too many groups opposed to the development.
The stock is down because the market is using the share sale as a sign that management thinks moly market has peaked short term. Interesting that this share sale happens before they post lower moly price.
nonetheless, I think this is a buying opportunity
Taken from an article in the Financial Post Trading Desk earlier this week. The link can be found below on this board.
"Blackmont analyst George Topping notes some capital will be spent on the Endako expansion in British Columbia, but should max out at about $100-million and would be easily funded by existing cash flows."