Join our daily newsletter At The Bell to receive exclusive market insights
Capricorn Metals (ASX:CMM), a gold heavyweight capped at over A$4 billion, is buying junior explorer Warriedar Resources (ASX:WA8) – capped at $167 million.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
But many investors on the HotCopper forums have expressed ire with the newly mooted July deal, namely because Capricorn gets to buy Warriedar at just 15.5cps. That, in the eyes of many users, is too low.
While the board has unanimously recommended the deal and the Warriedar share price was up just shy of +20% in late morning trades to just over 14cps, the news has boosted what’s already been a solid YTD run for the company.
And that solid YTD run is likely what is motivating relative outrage from shareholders who have seen the junior gold player just start to get its groove.
At least one user expressed a belief that Warriedar could easily climb to a A$1 billion market cap. While that’s a long way off, such conviction underscores why some shareholders may be appalled.
Warriedar has been busy this week at the Noosa Mining Conference, giving a presentation at the event back on Tuesday.
More market news
Meet GeoGeorge: The HotCopper poster so accurate he got hired as an analyst
‘TACO’ in action: Trump has turned into the boy who cried tariffs
On Capricorn’s part, it wants Warriedar for its Golden Range Project (GRP), which boasts a JORC of 2.3Moz gold equivalent.
For all intents and purposes, it looks like Warriedar’s already made up its mind on the deal.
WA8 last traded at 14.5cps.
Join the discussion: See what HotCopper users are saying about Warriedar Resources and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
