How does the current economic environment impact a buyout price?

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CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)

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BurningRoF

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How does the current economic environment impact a buyout price?

posted on Jul 25, 2012 09:36AM

I have seen a lot of people mentioning that David and Stifel have bought at higher prices thus a buyout price needs to be, at the very least, higher than these entry points. While I don't completely disagree with this, as my guess in the pool was $3.30, I am wondering if this does matter given the current economic climate?

In looking at Trelawney Mining (TRR), they were a $5.00 stock around the same time that CUU was near it's high, along with other junior companies. Before being bought out by Iamgold, they were hovering around $2.30, over 50% down from their highs. This is not that dissimilar to how CUU is currently trading. Anyways, the board accepted a 42% premium takeover price which obviously does not put it close to its 52 week high.

Anyways, I am well aware that there are a lot of differences between CUU and TRR but I thought it was interesting to look at. I sure am hoping this is wrapped up soon.