I posted this on the VIT forum and thought I'd post it here as well. Just my two pence...

SGV is a fine company and like so many other junior miners it has vast resources, but misses the financial resources to turn the resources into reserves - and then into bars. SGV has significant indicated resources (2.8M Au oz), which means that at the current price of 5 cents per share, you'd be paying C$3.10 per indicated oz. That is a ridiculously low price and it doesn't often get much cheaper than that in junior-mining-land. Then there's tungsten as well.

But deals are not judged on potential, they're based on market caps and premiums. Knowing that an SGV shareholder gets .1249 shares of VIT (let's just say eight SGV shares become one VIT share), anyone can do the maths. Yesterday's close of SGV is C$0.05, while VIT closed at C$0.39. That means that in the public market you'd pay 7.8 SGV shares for each VIT share. Now where's the premium in that?

If I wanted to own VIT, I'd rather buy the shares directly through my broker and keep my SGV shares. No way shareholders will vote in favour of this deal. Sure, it'll be a nice deal for VIT, but please, VIT management, show me plans on how these two companies are going to be integrated and what economies of scale there will be. Show me how a takeover by VIT will be beneficial to SGV shareholders and I may change my mind. But simply based on statements such as "it's good because now we'll have more resources together", I'm afraid I'll have to oppose...