Liberty Silver Corp (TSX:LSL) issued a letter to shareholders os Sennen regarding its acquision bid.

As stated in the letter:

In Liberty’s view, the junior mining sector is going through a fundamental transformation.

Consolidation will result in fewer junior miners, each with a multitude of projects guided by the highest quality talent in every aspect of their business, including: governance, risk assessment, capital markets, regulatory requirements, communications, finance, geology, drilling, engineering, quality control, consultants, permitting, environmental, and assaying.

Junior mining companies that rely on traditional financings from the high risk/reward venture markets as a way to drive from exploration to production will be severely challenged. Many will not survive.

The bottom line is that only a small number of high-quality miners with a disciplined approach to risk will benefit from the consolidation. Liberty falls into this category.

Click here to read the full shareholder letter.