Merger Of US Gold, Minera Andes??

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#1 Tue, Jun 14, 2011 - 7:07pm
tankiki
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Merger Of US Gold, Minera Andes??

Hummm... Can this lift UXG and MAI? 

Hello, I saw this today and am wondering if you think this will be a good move for both companies? Also does anyone have news from the Lawsuit with MAI recently? I am holding tight to my shares although they got a bitten recently...

Thanks a bunch!

https://www.kitco.com/reports/KitcoNews20110614AS_interview.html

Edited by: tankiki on Nov 8, 2014 - 5:10am
Tue, Jun 14, 2011 - 7:27pm
Nowhuffo
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Merger

Otto at his IKN blog commented on it. 

Tue, Jun 14, 2011 - 7:31pm
Mike
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Thanks for posting

I own both. Interesting.

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3
Tue, Jun 14, 2011 - 7:37pm (Reply to #3)
Nowhuffo
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Merger

From Marketwire:

Rob McEwen to Discuss Merger Details at US Gold's AGM in Toronto

1 King West, Grand Banking Hall, June 14, 2011 at 4:00 PM Eastern

TORONTO, ONTARIO--(Marketwire - June 14, 2011) - US Gold Corporation (NYSE:UXG)(TSX:UXG) - Rob McEwen, Chairman and CEO, invites you to attend US Gold's 2011 Annual General Meeting. Rob will be providing details on his proposed merger between US Gold and Minera Andes and how the combination will create a high growth, low-cost, mid-tier silver producer focused in the America's. In addition, he will also be discussing his outlook for gold and silver.

The meeting will be held in the Grand Banking Hall at 1 King West Hotel in downtown Toronto, Ontario, Canada. Doors will open at 3:45 PM (Eastern). Directions can be located by clicking on the following: https://www.usgold.com/news/pdf/20110614_agm/usgold_agm_invite_2011_1.pdf

Live webcast can be viewed by clicking: https://www.meetview.com/usgold2011

Corporate presentation can be viewed by clicking: https://www.usgold.com/news/pdf/20110614_agm/20110614_usgold_agm_presentation.pdf

Tue, Jun 14, 2011 - 8:14pm
bobby
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not sure if I will do it

not sure if I will do it right, but a big hat tip for this

I wonder, what will it mean?

The acquired company usually increases in value?

What will the split be, how many GG shares for every Minera Andes share?

I trust McEuen. He has a lot to do with why I sunk my George Washingtons into the deal. I hope he is true to his word.

Tue, Jun 14, 2011 - 9:16pm
Kumanari
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Merger

Just scooped more uxg at about $5.50 adding (doubling) my jan$10 calls. I was going to buy Minera but now I don't have too. McEwen's plan is to be on sp 500 by '15 I imagine he will get there well before that date as he has a tendency to under promise and over deliver. I believe I read a piece today that said they're ag cost was -$.40 and going lower. That is no misprint NEGATIVE .40 (forty cents). McEwen has a history of sitting on product, selling later in the bull getting more $. UXG is the only (usa)jr on the nyse according to KWN.

My one small issue is the name change, companies with certain words in their name will go super ballistic in the mania phase ( gold , silver, us) as they did in the 30's and 70's.

Gold Bond powder went up several hundred percent in the 30's because of that. I quadrupled my $ on Strategic Rare Earths in 09 on that logic, they mine marble but I had observed them doubling and tripling (.02 -.04) so I threw 1k at them and 2 months later bam!

Tue, Jun 14, 2011 - 9:22pm
Eric Original
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I like it

Minera has the current production, US Gold has the cash, and they both bring growth projects to the pipeline. I own both, so I'm not really quibbling about which is better to hold right now, etc.

I went through the presentation about it earlier today. Nowhuffo posted the link above. It's good.

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.
Tue, Jun 14, 2011 - 9:50pm
infinite_easing
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implied pps

the implied price per share of MAI based on prposed buy out price and shares outstanding runs to almost C$2.21. It closed today around 2.17, so it is fairly valued at this point.

Tue, Jun 14, 2011 - 10:05pm
hawkeye
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El Gallo silver mine

I watched the AGM for US Gold today and was very impressed with Rob McEwen and the V.P.'s who also spoke at the meeting. The El Gallo project was discussed and will be a money-maker for McEwen Mining. Development costs are projected at $150 million with a one-year payback rate with silver at $28 an ounce. Existing reserves are projecting a 6 year mine length, but he noted that the deposit is still open and drilling will continue. McEwan also answered a question from the audience about dividends. He stated that miners that pay dividends and reward shareholders meaningfully also reduce the cost of capital for the company. I expect McEwen Mining will be a leader when the bull market in silver resumes. I own the stock and plan to add to my holdings when QE3 is put into place, or whatever the new plan will be called. 

Tue, Jun 14, 2011 - 11:03pm
xaritas
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Good leadership

I'm probably overweight in Rob McEwen operated companies by normal portfolio recommendations, but I sleep well. Obviously Rob McEwen's portfolio is also overweight in Rob McEwen operated companies. I'm sure he is doing this to maximize value going forward. If the market's reaction to this is dumb, I will buy more.

I love companies with CEOs who are in love with their product. 

Wed, Jun 15, 2011 - 1:44am
BUDDHA PRINCESS
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US Gold (McEwen Mining Inc) AGM and Minera Andes Merger

I have attended the meeting today. There was over 100 people attending. I have been reading Rob Mc Even's articles and watching his video. He takes no salary and has about 25% control in combined company, which is currently worth $345 million. I told him that his fingers are dusted with gold as he has been so very successful with so many of his projects and companies.

I have been long thinking about investing in mining shares and I think I have found the one I want to invest in. They are planning to be in production by 2014 same time the price of Gold was predicted to be 5K and silver 200. He will also pushing for the company to be included in SP 500. He mentioned that new qualification for inclusion has been increased from $3.5 billion to $5 billion. So this merger will bring this new company McEwen Mining Inc. one step closer to his aim.

One of the shareholders asked if the merger would allow for accelerated funding for Minera Andes’ exploration properties. Rob said "definitely". There was a small reception with open bar afterwards, which gave the shareholders opportunity to talk to each other and mingle. 

I hope this will be a golden opportunity.

Wed, Jun 15, 2011 - 3:29am (Reply to #11)
Ford_Prefect
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Cash Flow Is King

A couple of things (disclosure: I own both)...

  1. Rob was on KWN and said the debt pay down on Minera is complete by Q1 2012 and cash flow from Hochschild partnership doubles (already a healthy positive). UXG has no cash flow, but has bullion in piles. The merger creates a debt-free, heavily capitalized company with excellent cash flow growth.
  2. UXG is in extreme oversold position. See chart: https://stockcharts.com/h-sc/ui?s=UXG&p=D&yr=3&mn=3&dy=0&id=p84570953752&a=235997171
  3. It has been brutally shorted as of late: https://www.nasdaq.com/aspxcontent/shortinterests.aspx?symbol=UXG&selected=UXG
  4. I think it can go lower as the market continues to sell off, so waiting a while will get an even better deal.
Wed, Jun 15, 2011 - 9:12am (Reply to #12)
Turd Mentality
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Copper

I think the merger is good to potentially stabilize both company share prices. Extra cash also allows for a more concerted drilling effort. As an MAI shareholder I am concerned that any details of the potentially huge copper holdings have not been made public. I don't think the value is reflected in the current MAI share price. As such I think the offer of 0.4 UXG shares is too low. 

Wed, Jun 15, 2011 - 11:41am (Reply to #13)
Ford_Prefect
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Los Azules

Agree on the copper bit, but there's an ongoing legal fight over ownership of that property and I think it will be a long time before it's resolved.

Wed, Jun 15, 2011 - 1:26pm
Silvergunn
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MNEAF and UXG

I am holding 4 times the MNEAF value as UXG so I hope they sweeten the 0.4 of UXG higher :)

Other than that, this is why I like Rob McEwen, he's da man!!!

Wed, Jun 22, 2011 - 8:43pm
Eric Original
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Merger analysis

I posted my own analysis of this merger on my gold miner thread. Comment # 42. Feel free to check it out.

https://www.tfmetalsreport.com/forum/672/eric-os-favorite-gold-miners

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.
Thu, Jun 23, 2011 - 9:05pm
ghost
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So when do you guys think the

So when do you guys think the merger will happen, and once they merge will UXG / Minera's shares go up?

Thu, Jun 23, 2011 - 9:40pm
Eric Original
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Ghost Re: Minera/UXG

McEwen says he'd like to get it done by the end of October. Generally speaking, I think they are going up, but I don't know if wrapping up the merger will be a particular catalyst. It will have more to do with gold/silver prices, and drilling results, as usual.

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.

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