On the Friday before PDAC 2017, Anaconda Mining announced plans to takeover Orex Exploration in an all share deal. This was a surprise for me, but in line with the strategic vision Mr. Angelo, CEO of Anaconda Mining, had conveyed to me in our first interview back in November. After doing some background work on the situation, I think it presents a very interesting example of the economics of a takeover in the junior mining space and it is my pleasure to share my initial thoughts on the deal here.

My first impression is that the two companies are complementary. I see this in terms of management teams: Anaconda has a proven operational team and Orex has capital markets experience; and in terms of corporate assets: Anaconda has an operating mine and Orex has a known deposit. Put it all together and what do you get? Hopefully, a situation where the whole is greater than the sum of its parts!