At the time of writing, shares of Capricorn Metals Ltd [ASX:CMM] are up by 54.24% to 9.1 cents per share.
Why did Capricorn Metals Ltd shares do this?
The company announced a confidential, non-binding, indicative acquisition proposal from Regis Resources Ltd [ASX:RRL]. The offer stands at 11.4 cents per share, representing a 93% premium on Capricorn’s last closing price of 5.9 cents on 21 September.
What now for Capricorn Metals Ltd?
The market reacted favourably to the news, as you can see on the chart below:
The share price hit a high of 9.2 cents today.
I’ve been tracking this company since it was at 8 cents per share last year. I believe the fundamentals have been drastically undervalued by the market all year.
It’s no surprise a take-over offer has been received by the market.
The best gold miners are trading at astonishing discounts in this market, primarily because the gold price has remained depressed.
The bottom line: The proposal looks good for shareholders. But a few hurdles remain before the offer becomes binding and supported by the directors of Capricorn Metals.
Resources Analyst, Markets & Money
PS: Interested in mining stocks? My free new investor report, ‘The Top 10 Mining Stocks for 2018’, does exactly what it says in the name. I look at 10 companies that I believe could potentially make you huge money this year, and beyond. To download that report free, go here.