I would think that SGR brings a lot more to the table than Kerr, considering that we have the mill and the ability to pour the gold. That kind of infrastructure is worth more, even if the market cap doesn't reflect the value of the equipment and infrastructure of SGR.

A merge of Kerr and San Gold should have the Kerr shares valued at a low decimal place.

A simple valuation, based on market cap alone, would have the Kerr shares valued at .2069 of SGR for each Kerr share. (Dilution kills my friends)

The warrants outstanding should be priced at .77 cents for each .2069 of an SGR share or for a full share of SGR, 3.74.

All of that is based on a simple market cap valuation. The price of the gold assigned to each category would move the sticks based on who has what. And again, the price of the infrastructure would also move the sticks.

I could be way out to left field on this, I am sure that there is much I have not considered, not being in the mining industry and all, but the value of money I do understand, whether I choose to believe it or ignore it to my own peril is another thing.

I think it speaks volumes that they are not considering some kind of financing or unable to get it to just buy them outright. They couldn't be that much, either way, in this scenario.