There is a huge opportunity now for SKP to make a move on WEL @ an initial 1 for 5 bid..... May not fly but I bet a 1 for 4 would fly. Shareholder would vote yes.
WHY would SKP do this?
Skp has obligations to earn its intrest in the Poundmaker.... That will require further dilution. There would be less dilution for SKP to take over WEL as those work commitments would dissapeer. SKP would have 100% intrest in the poundmaker right away, would also have the Mike Power zone as well as all the other Bisset properties. SKP would become a land barron and I bet the stock price would move into the $1.00+ range.
SKP is already flush with cash so further dilution would be unnecessary.
The WEL base metal properties could be Jv'd with some other jr such as VMS or RCR.
There are a couple other scenarios which could be in the works, but my preference would be to see an amalgamation rather than further striping of assets without compensation to the shareholders.
If the relative valuations continue to spread the opportunity is there for SKP to capitalize on.... the low WEL share price being a real and present danger.
Once those wts have expired the reduced cost to SKP might triger such an event..... But with a 1 for 5 or 4 rollback of those wts it would also provide more cash to SKP if these wts get in the money after a takeover.... I/E .60 to .75 wts and .80 to $1.00 wts .That $3 million would also be right price financing for SKP.
JMHO
I keep hearing that something is coming soon from the WEL front.... I just hope it isn't a freight train.
