You bashers keep harping on Banro's debt.
Here's my thinking. China Gold wants the gold in Congo. They might not want to aquire Banro in order to access the gold. I think one key reason why an acquisition may not be in the cards here is the 10 year Tax Holiday.
If Banro is acquired, this Tax Holiday may not be transferrable to the acquiring company. (someone chime in if it is)
Regardless, I think one of the keys to what happens next is this 10 year tax holiday, as in, time is of the essence to get that gold out of the ground sooner, rather than later.
That being said, the acquiring company may not want to "Risk" purchasing a company in the Congo, where their releationship with the Congolese may not work out going forward like they hope.
Since Banro already has this "relationship" and all of the mining rights, it might make more sense for a China Gold to pony up the money to finance the last 2 mines Now, in exchange for a percentage of the mined gold later.
They did have an agreement like this with the first mine, after all.
In this way, Banro makes out well, because they can maximize the mined gold on these new properties quickly, they can quickly pay down their debt with the help of China Gold Cash, and not get weighed down with the cost of developing the new properties.
China gold would get the gold they want without the red tape dealings with the Congolese.
So if Banro announces that on Thursday they now have 2 productive mines, and then later announce a deal with China gold to develop the last 2 mines, where does that put the stock price???
Hmmmmmmm would it be.....oh, I don't know......47cents per share?
Go Longs... Go Banro!!
