Medinah Minerals (MDMN)

[Hookmeistr]

I agree with you fully! Here's something else posted on MP by TR:

Traderich wrote:
A good, quick read: http://kingworldnews.com/kingworldnews/ ... _2012.html


Of interesting note to me are the last three paragraphs from this article:

Sometimes analysts and shareholders are critical of acquisitions during bull markets because they believe a company paid too much for a business. As long as the acquisition is solid the acquiring company’s share price is greatly rewarded in the long-run. The primary reason is that the metrics that are used to determine unit value are moving, in this case based on the price of gold.

A gold acquisition may be viewed as expensive at first, but later it will look brilliant as the underlying commodity, in this case gold, will be rising for many years to come on the way to a manic blow-off phase. As the price of gold rises, the underlying flow-through to the bottom line is extraordinary as long as costs can be contained.

This is all part of a process which will move the HUI (Gold Bugs Index), currently at 531, to the high 800’s as Eric Sprott predicted. As Sinclair noted, the majors must buy qualified juniors. The important thing to remember here is to position yourselves in companies that will be acquired. Going forward there will be tremendous price appreciation in those “qualified” juniors, then a premium will be paid on top of the already marked-up share price.

This triggered a thought for me. Assuming that this deal we're about to enjoy is really as large as we believe it is (and I do believe this), for a company / consortium to invest so heavily (huge deal for us) into our project I can only imagine what will happen to our share price over time once the production results begin to be reported.

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