VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 17, 2015) - Timmins Gold Corp. (TMM.TO)(NYSE MKT:TGD) ("Timmins Gold") andNewstrike Capital Inc. (TSX VENTURE:NES)("Newstrike") are pleased to announce that they have entered into a definitive arrangement agreement (the "Arrangement Agreement") pursuant to which Timmins Gold has agreed to acquire all of the issued and outstanding common shares of Newstrike by way of a court approved plan of arrangement (the "Arrangement"). continues here
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The skinny: Instead of agreeing to be bought out at U$2 last year (it was on their table, it was knocked back), the entrenched management at Timmins Gold (TGD) (TMM.to) dilutes its already weak share price even further by purchasing another über-high political risk exploration stage project.
For the record last year I owned some TMM, basically for the high chance of the buyout. I rode it up, then rode it down, then sold at a small loss. My trade was dumb (you can tell because it was a loser) and smartest part of that process was the selling, but in the end I did get some value for my lost money because there are some things more important than mere monetary gain. In this case it was getting a course on how self-centred boards of directors in mining companies can be, how they often care zip zip nada about building share value, how their only concern is empire-building at all costs. In the case of TMM the costs are high indeed.
A very, very stupid group of mining people. If I were a holder this morning I'd be spitting mad, as it is I can relax and watch the fallout from the sidelines.
This morning's NR here, excerpt here:
PS: The corporate presentation on the merger is on this link. If it reminds you of the time Elgin bought out Gold-Ore Resources, I won't be at all surprised.