I am not sure if this is a good aquisition or not. What will be left once the company is acquired (we have ~96 million in the bank) with respect to cash? Is it worth 1/3 of our cash on hand and if it is worth more - up to what price? How will this aquisition add to our bottom line and fit into the interests of shareholders? What would be the timeline for the development of the Kinbauri's mineral project?

Many questions, I also would appreciate some insight if other members have some. It will be interesting to see the development in the following days. As for now the offer has been rejected.

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May 11 (Reuters) - Canada's Kinbauri Gold Corp rejected a C$29.3 million ($25.50 million) takeover offer from Orvana Minerals Corp , as an investment deal with Glen Eagle Resources Inc was on the cusp of completion.

Earlier in the day, Orvana proposed to buy Kinbauri for 55 Canadian cents in cash, after the company failed to negotiate a deal with Kinbauri's management.

On the other hand, Glen Eagle had on April 17 offered to invest C$32 million in Kinbauri for a 45 percent stake in Kinbauri Espana unit, which hold interests in the El Valle/Carles gold and copper project in northwestern Spain.

Although Orvana's offer is at a premium of 39 percent to Kinbauri's Friday close, Glen Eagle's investment "implies a value for Kinbauri o f C$1.60 per share," without considering other assets.

"To now sell our company at this price would be without recognition of its true value and without recognition of upside from development and production of the property to shareholders," Kinbauri Chief Executive Vern Rampton said in a statement.

Orvana, however, said Kinbauri's largest shareholder Dynamic Precious Metals Fund, with over 8 percent stake, has entered into a lock-up agreement in support of its bid.

Orvana said it has the capital and resources needed to develop Kinbauri's mineral project in the Asturias region of Spain.

Shares of Kinbauri were up 42 percent at 56 Canadian cents on the Toronto Venture Exchange.