Red Eagle Mining (RD.V) has reported 48% of the CB Gold (CBJ.V) shares have been tendered to the offer made by Red Eagle which consists of swapping each share of CB Gold for 0.162 new shares of Red Eagle Mining, in an attempt to get its hands on CB’s Vetas gold project in Colombia. However, if you would exclude the questionable private placement consisting of 11.5M shares that had been issued to Batero Gold (BAT.V), more than half of CB Gold’s shares had been tendered to Red Eagle Mining.

Red Eagle still intends to apply to the BCSC to reverse this placement but even if it isn’t able to do so, it will very likely secure in excess of half of the outstanding shares of CB Gold anyway as Red Eagle will also start to buy stock on the open market. By acquiring just 4M shares of CB Gold on the market, Red Eagle will own in excess of half of CB Gold’s stock, effectively ruining Batero Gold’s chances to obtain control of CB Gold.

The battle is almost over and it looks like Red Eagle Mining will emerge as winner of the war, without having to increase its offered acquisition price. And that’s probably the smartest decision the CB Gold shareholders could have made as Red Eagle’s San Ramon project is fully permitted and financed whilst Batero’s large low-grade bulk tonnage project will remain unviable in the current gold and copper price environment.

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Disclosure: The author holds a long position in Red Eagle Mining. Red Eagle also is a sponsor of the website. Please see our disclaimer for current positions.

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