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.