Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

HK Type 4 license through Ballingal Investment Advisors Ltd. ("BIA" or "BIAL")

BACKGROUND
I have 20+yrs experience in Asia doing alternative strategies (i.e. non-delta1 non long-only) in fixed income, equity derivatives, and activist/catalyst/event-driven and long-short equity strategies with most of that time spent managing money. 

4 years in fixed income macro, 8 years running internal hedge fund and 4yrs investment banking at Citi in Japan, 3 years running an Asia multi-strat portfolio at a hedge fund, 4+yrs as an independent special situations analyst.

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

This morning gold mining junior <a href="https://www.smartkarma.com/entities/17921" target="_blank" data-smartkarma-citation="entities:17921:1">Beadell Resources (BDR AU)</a> (A$100mm mktcap) saw a Trading Halt and a short while later it was clarified that it was in regards to a proposed scheme of arrangement. Four hours later, Beadell and US-listed Canada-headquartered Mexico-mines silver miner <a href="https://www.smartkarma.com/entities/27466" target="_blank" data-smartkarma-citation="entities:27466:1">Great Panther Silver (GPL US)</a> offered a <a href="https://www.asx.com.au/asxpdf/20180924/pdf/43ylc6y6djpqbp.pdf" target="_blank">press release</a> announcing a friendly acquisition of Beadell by GPL "to create [a] new growth-oriented precious metals producer. Silver and Gold.<iframe src="https://ytcropper.com/embed/Ci5ba8c550e0849/loop/noautoplay/" width="840" height="630" frameborder="0" allowfullscreen="allowfullscreen"></iframe>This acquisition will be done via a Scheme of Arrangement.Great Panther runs silver mines in Mexico and a project in Peru and is positioned to add in Brazil. Beadell has a 100% stake in the Tucano Gold Mine in Amapá State, northern Brazil. Great Panther is somewhat cashed up. Beadell runs net debt similar to its pre-announcement market cap. <h2>Scheme Details</h2>A <a href="https://www.asx.com.au/asxpdf/20180924/pdf/43ylcfkw7fttnd.pdf" target="_blank">Scheme Implementation Deed</a> and <a href="https://www.asx.com.au/asxpdf/20180924/pdf/43ylnkyfvnknm1.pdf" target="_blank">Presentation</a> were released. The Scheme is under a scrip exchange of 0.0619 GPL shares for each BDR share, valuing each Beadell Resources share at A$0.086 based on the closing pice of Great Panther on Friday 21 September. That is a 51% premium to BDR's Friday close and a 69% premium to the 20-day VWAP up to and including 21 Sep. That is a healthy premium and should be welcomed by Beadell investors.Directors of Beadell have unanimously recommended shareholders vote in favour of the Scheme in the absence of a superior proposal and subject to the Independent Expert opining the Scheme is in the best interests of shareholders. Funds associated with Equinox Partners and Donald Smith &amp; Co holding a combined 17.01% and other holders representing another 1.05% for a total of 18.06% of Beadell's register have agreed to vote in favour of the Scheme.The whole deal looks attractive. But the fact that so little of Great Panther is available on public shareholder registers tells you that it is likely to be difficult to borrow. Beadell traded briefly today after the halt was lifted, rising 21% to A$0.69, still a 20% discount to where Great Panther closed Friday. Surely Great Panther will fall somewhat as hedgers short what they can.Besides, GPL was up 21% last week. As long as GPL is tough to borrow, this will trade wide.More below.

This morning gold mining junior Beadell Resources (BDR AU) (A$100mm mktcap) saw a Trading Halt and a short while later it was clarified that it was in regards to a proposed scheme of arrangement. Four hours later, Beadell and US-listed Canada-headquartered Mexico-mines silver miner Great Panther Silver (GPL US) offered a press release announcing a friendly acquisition of Beadell by GPL "to create [a] new growth-oriented precious metals producer. Silver and Gold.This acquisition will be done via a Scheme of Arrangement.Great Panther runs silver mines in Mexico and a project in Peru and is positioned to add in Brazil. Beadell has a 100% stake in the Tucano Gold Mine in Amapá State, northern Brazil. Great Panther is somewhat cashed up. Beadell runs net debt similar to its pre-announcement market cap. Scheme DetailsA Scheme Implementation Deed and Presentation were released. The Scheme is under a scrip exchange of 0.0619 GPL shares for each BDR share, valuing each Beadell Resources share at A$0.086 based on the closing pice of Great Panther on Friday 21 September. That is a 51% premium to BDR's Friday close and a 69% premium to the 20-day VWAP up to and including 21 Sep. That is a healthy premium and should be welcomed by Beadell investors.Directors of Beadell have unanimously recommended shareholders vote in favour of the Scheme in the absence of a superior proposal and subject to the Independent Expert opining the Scheme is in the best interests of shareholders. Funds associated with Equinox Partners and Donald Smith &amp; Co holding a combined 17.01% and other holders representing another 1.05% for a total of 18.06% of Beadell's register have agreed to vote in favour of the Scheme.The whole deal looks attractive. But the fact that so little of Great Panther is available on public shareholder registers tells you that it is likely to be difficult to borrow. Beadell traded briefly today after the halt was lifted, rising 21% to A$0.69, still a 20% discount to where Great Panther closed Friday. Surely Great Panther will fall somewhat as hedgers short what they can.Besides, GPL was up 21% last week. As long as GPL is tough to borrow, this will trade wide.More below. 

Silver and Gold: Great Panther to Acquire Beadell