Q: Hi Peter…May I have your thoughts on the McEwen announcement? I can’t figure out who is buying whom. It looks like GOT is taking a position in McEwen which seems distracting. Can GOT sell the $10 million worth of McEwen shares? Is this a start of a merger? Any thoughts you have would be appreciated.
Jim
Jim
5i Research Answer:
MUX will end up owning 3.76% of GOT and gets 'a seat at the table' if it ever comes up for sale. GOT gets 868,056 MUX shares. Rob McEwen already owns GOT shares personally so it smells like a confict, which is not unusual for MUX. While it is not stated, such deals typically require a holding period on the shares, which can range from four months to one year, most of the time. We doubt it sets up a merger, at least in the medium (couple of years) term.