Monday, September 27, 2010

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

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.