Mega Silver Lining in Skybridge Deal

By James West
MidasLetter.com

Thursday, February 19, 2009

Mega Silver (TSX.V:MSR) is doing a deal with Skybridge Development Corp.(TSX.V:SBD) to combine the two companies in a friendly all-share offer that will see Skybridge shareholders receive one share of Mega for each 2 and a half shares of Skybridge. The deal isn’t complicated and there’s no reason to assume it won’t be approved by regulators.

What smart cats are starting to realize though, is that this combination would appear far more valuable than the some of its various parts.

Consider that Skybridge Development is a major shareholding of Ewan Downie’s, who has acquired the mantle of fame within the resource industry for his successes with Wolfden Resources and Premier Gold Mines, of which he is president, and Abraham Drost, whose Sabina Silver is a major success story in the silver industry.

Then look at the caliber of properties and management that has been assembled under the Mega Silver corporate umbrella. What has been forged out of the two companies is what appears to be a precious metals winner on both the silver and gold fronts, with excellent exploration targets and premium management. Not to mention access to capital well above the norm.

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