The following comments from Casey's Big Gold.

Comments:

(VGQ.TO, C$10.07, 33.5M SO, 34.3M FD, C$337.3M MCap, www.virginia.qc.ca)

Big news from Virginia. This merger (not a takeover) makes a lot of sense, and even more exciting for us investors, the new company will be a royalty powerhouse—it will be the fourth largest mineral royalty company in the world, have over $200 million in cash, and come with two of the strongest gold royalties in the industry and give Virginia substantial and immediate cash flow. And since it’s for shares, the offered premium is not the end of the story... more acquisitions will clearly be in the company’s sights. If all this wasn’t good enough, it’s highly likely the company will initiate a dividend program. It is possible exploration could take a back seat, but with Andre still in charge we think he’ll keep it a priority. We definitely recommend voting in favor of the merger and holding on to your shares.