We have heard much about KXL and SGX continuing to trade at 10:1 share price ratio. Still is. Almost religiously.

From a market capitalization perspective they are actually holding steady at about 4:1.

90 million shares of KXL out at $0.60 = $54 million.

230 million shares of SGX out (fully-diluted) at $0.06 = $13.8 million.

$54:$13.8... ~3.9:1...

Therefore, IF KXL and SGX were to merge today, we could see shares of both companies exchanged for shares of a 'new' company at ratios of 4:1 for SGX and 1:1 for KXL... . Resulting company would have 146.5 million shares out, have some cash, and a MASSIVE property position. KXL could also spin out uranium division and keep some cash for it. Can anyone think of a new name for the new gold and base metal company that would result?

Why would SGX or KXL do this? To get bigger. Bigger often better in this business and especially in this market environment IMO. They would lock up all that land and discoveries under one roof. Make it more efficient to explore and much easier for major to ultimately make offer for entire package. I would support this in a heartbeat... have been through it before.

Just thinking out loud... it is possible... similar arrangements have happened and been very beneficial to shareholders in the past (i.e. Southern Star + Exall = Gold Eagle arrangement almost identical to what is described above)... both companies have been following each other for a LONG time now.

red911