Undervalued gold exploration penny stock Bullion Monarch Mining (OTC: BULM.OB) started last week off with a bang by announcing it had entered into a merger agreement with Eurasian Minerals, Inc. (TSX-V: EMX). Shares in the soon to be acquired penny stock reached as high as $1.14 last week. The agreement to acquire all of the outstanding BULM shares is expected to close in Q2, 2012. BULM shareholders will be entitled to receive 0.45 of an EMX common share and US$0.11 cash for each BULM share held. That values BULM stock at $1.26 as of Friday’s closing price in EMX.
BULM shares gained 43.42% for the week despite closing down -3.54% (-0.04) Friday at $1.09. Factoring in the acquisition terms from EMX, BULM has an upside of 15% based on EMX closing price from Friday. EMX was added to the Standard & Poor’s S&P/TSX Venture Select Index in October, 2011 and more recently added to the NYSE Amex on January 30, 2012 and is traded as EMXX. BULM is up exactly 49.32% since our January 4 alert at $0.73.
Shareholders of BULM and those looking to play the merger should monitor EMX shares closely for jumps in share price prior to the acquisition completion of Bullion Monarch.
Subscribers who received and acted on the BULM have profited nearly 50% with a high probability of an additional 15% or more. Join today to receive alerts delivered straight to your inbox on companies like BULM before they skyrocket.
ShareFEB