Post by
goldennorth on Jun 02, 2021 4:29pm
Good Merger.
The portfolio got bigger on April 21, when Stratabound agreed to buy California Gold Mining (CSE:CGM) in an all-stock deal valuing CGM at about $15 million. The markets often overlook small mergers, but looking past this one is a mistake. As it happens, Stratabound didn’t get a boost from the acquisition news and it remains at a valuation around $15 million. The buyout instantly added value to Stratabound’s already strong portfolio.
The main asset coming to Stratabound is the advanced stage Fremont gold project in Mariposa, California. The project hosts two historical underground gold mines across approximately one kilometer out of a total four kilometers of strike along the regional Mother Lode Shear Zone extending across and beyond the property. A National Instrument 43-101 mineral resource on Fremont shows 515,00 ounces of gold grading 1.71 g/t gold in the Indicated category and another 364,000 ounces Inferred at 1.44 g/t gold. The estimate only considers one area (the Pine Tree-Josephine zone) at the 3,351-acre Fremont property. At current prices, the gold from that single section is worth about $1.6 billion.
This is a great merger for both companies California Gold Mining Inc and Stratabound Mineral Corp. Time will reward them very well!
https://www.stratabound.ca/images/stories/2020/stratabound_fact_sheet_2020.pdf