With the
stock not trading at $0.002 for over a month and a couple of buyers coming up
on open yesterday morning and this morning paying the same price it hasn’t been
hard to identify that there was something going on in the background. This was confirmed today with a solid 29 million
units changing hands with basically all the stock trading at $0.002 except for
a small quantity on close. The stock
closed at $0.001 however this can more or less be ignored as these units sold
into the close appear to be sold by a Chi X bot that bought during the day and
has a mandate that it cannot hold overnight.
Anyway, now
that the trading aspect has been covered let’s take a look at the story which
starts with another company, Orbis Gold Limited (OBS).
Orbis Gold
recently announced an updated scoping study showing very solid numbers on their
Natougou gold project in Burkino Faso.
At the same time, the company also announced that they had received an
unsolicited and indicative takeover proposal by Semafo Inc. for $0.62-$0.65 per
share. Interestingly, Semafo Inc. did
not have a condition to complete due diligence on the OBS takeover. In other words they are very confident that
the company is undervalued and they are wishing to move quickly. So much so, a few days later they announced
the takeover for $0.65 per share.
Trading in OBS shares has resulted the price creeping up to $0.70
today. This suggests that the market
believes another bidder may appear or that the stock has been re-rated as a
result of the scoping study. At the
start of trading today the market capitalisation on OBS is approximately $167
million. They’ve also hired an adviser
for their defence indicating that there’s going to be more to the story.
BDI tenements
lie adjacent to OBS’ making it a nearology play. BDI’s tenements appear to be on the same
fault line. BDI has a miniscule market capitalisation
of approximately $1.5 million. As at June 2014 their cash balance was $1.4
million.
BDI have made the following
comments on the project “The soil sampling showed high gold values in excess of
50ppb but Blina was unable to access the original analytical reports and has
therefore adopted a cautious approach to the results. However, the regional
setting of the Exploration Licence just 15km from the Natougou gold deposit on
an interpreted north-northwest trending structure and along trend from the
regional soil geochemistry anomaly of Orbis Gold makes the tenement an
attractive exploration prospect.”
News flow on
Blina Minerals is imminent with the July quarterly activities Report stating
the following:
“A soil
sampling programme has commenced and results will become available in the
September quarter.”
These
sampling results are now overdue.
