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Gold/Mining/Energy : Canabrava Diamond -- Ignore unavailable to you. Want to Upgrade?

To: whisky who wrote (1265)	4/28/1999 2:09:00 PM
From: m.philli	Read Replies (1) \| Respond to of 2402

Thankyou Whisky, as always you provide enlightenment. My active imagination is indeed at work,so I will ask if you can dispel another idea that keeps peeping itself out of the back recesses of my limited gray matter. SWG is in full control of CNB, with that in mind and the same trading pattern seemingly appearing again, i'll ask you this: Can you see any benefit to SWG , who holds approximately 20 mm shares, making an offer to the shareholders of CNB who hold around 16 mm shares, to buy all outstanding shares for either a cash premium or in exchange for part of an SWG share, resulting in a 100% owned subsidiary. I'm wondering because it's starting to look like CNB is on the road to becoming self-sustaining, not requiring financing through more share offerings, With SWG trading at $4.50 range and CNB trading at say $1.25 range, SWG could offer a substantial premium say 2 shares of CNB for 1 share of SWG. This would result in a share issuance of only about 8mm ,giving them shares outstanding about 22mm. If CNB does succeed in Ontario and Brazil ,the value of CNB could easily surpass $20 as a minimum. The 16mm shares (which they don't presently own)of CNB would be worth at least $320mm. Now the 8mm SWG shares exchanged have a present value of about 36mm. A low priced private placement to a large fund holder who has shares purchased at a much higher price might facilitate their approval for such a deal. Can you see a benefit to a move of this kind? At the least it should bump the price of CNB up to $2 immediately, and show tremendous confidence in CNB's potential. As the Mexican bandito said to Fred C. Dobbs in Treasure of the Sierra Madre,"that's a good business for you".