It was looking bleak for Mercator Minerals (OTC:MLKKF).
Cash production costs for the company's Mineral Park mine in Arizona
had been running at double the former estimates and Mercator was not
only struggling to find the funds to develop the El Pilar mine, it was
losing the struggle to stay in business. While the shares had been
trading at a steep discount to the theoretical net asset value of the
mine properties, it looked as though the company was going to end up
conducting a fire sale of the El Pilar mine (or the company itself) or
see the assets ultimately pass to creditors.
And then a funny thing happened. Intergeo MMC, a mining company owned by ONEXIM,
the holding company owned by Russian billionaire Mikhail Prokhorov,
stepped up to the plate and offered to acquire the company. While
Mercator investors are not getting full value for their shares, they're
getting a better deal than almost anybody thought was possible, and
investors now have an interesting way to play both the public listing of
a well-known billionaire's mining company as well as a company with an
existing mine that can be improved, a promising mine that is close to
"shovel ready", and a third mine that could be a significant source of
value down the line.
Follow this link to continue:
Mercator Minerals Gets An Early Christmas
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