First off, there are NO junior mining experts..lol..just a whole lot of wannabes, myself included. Actually, I am probably a wannabe wannabe.
Anyway, it is not uncommon for larger companies to take positions in juniors. Not an everyday thing, but it does happen. many ways to do this - JV, PP, buyout outright, etc.
The event happening does not mean the stock price will increase, the truth machines will determine that. But, G is a very reputable company and as such would not throw money away on a whim. EVG has two excellent prospective properties but suffered from rather poor management. The decks have been cleared of that and the G deal provides the market and the shareholders with a large step up in confidence that the Company is on the right track. Yes, there is dilution, but overall, this is a very positive step for EVG in my opinion. |
