Value Microcaps Junior Miners

[daredguy]

RE: CSM / LRR Merger from stockhouse


Excellent News!
Kultsi1
12/25/2008 8:39:06 AM | | 13 reads | Post #25485523




This news is truly EXCELLENT!

The reasons are:

1. The combined company has a lot of free cash of approx. $ 20 million
2. Existing short term loan extended until latest June 2009 (enough time not to be worried and enough time to close the merger)
3. CSM is valued at CA $ 0.28 per share, good premium to last price of CA $ 0.195
4. MANY brokers/analyst/investors have priced CSM as a default candidate - this is now not anymore the case!
5. On a financing perspective: the merged company will have a strong balance sheet, that's a very important fact to achieve debt financings - I'd say it might have been a condition to get a debt financing or in other words: debt financing to complete Orosi is just around the corner and will very likely happen right after the final closing of the deal - the deal should be finalized within some weeks, forget about the latest deadline (this is just the legal deadline).
6. CSM and LRR will move ahead aggressively - both companies bring VERY valuable assets to the table and a merger makes the companies definitely stronger!
7. No dilution and no complicated share structure - leverage for shareholders remain in place

I believe that many investors will see the combined company as a very interesting (and very cheap) investment opportunity to gain leverage to production, exploration success and excellent JV with Kinross!

CSM IS ON TRACK AGAIN! I'd say the company has just turned to a STRONG BUY IMHO!