OTCQX:CGTFF - Post by User
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Zeffirinon Jul 25, 2016 12:53pm
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Six Mining Companies to Watch as M&A Heats Up
Six Mining Companies to Watch as M&A Heats Uphttps://www.theaureport.com/pub/na/six-mining-companies-to-watch-as-m-a-heats-up Source: Thibaut Lepouttre for The Gold Report (7/22/16) CGT part : Today I will focus on some logical buyout targets in the Americas. Junior exploration companies with an existing joint venture (JV) agreement are on top of the list. Not only does the existence of a JV deal confirm the company's asset has drawn the attention of other companies, but also those larger companies usually don't want to deal with minority partners on a project basis An excellent example would be Nordgold N.V. (NORD:LSE), which dislikes having minority partners on any of its projects. Even if there's a lot of opposition from the shareholders of the targeted company, Nordgold pushes through and usually secures 100% ownership of the asset it wants to get its hands on. That's what happened with High River Gold Mines several years agoNordgold wanted to own the Taparko-Bouroum and Bissa projects, rather than having High River Gold as a minority partnerand that's what might happen to Columbus Gold Corp. (CGT:TSX; CBGDF:OTCQX) as well. Nordgold is earning a 50.01% stake in Columbus' Paul Isnard gold project in French Guiana, but it's not unreasonable to think Nordgold will want to own the entire asset. As the after-tax NPV8% of the project is almost half a billion dollars (using a gold price of $1,300/ounce), Columbus Gold is trading at just one-third of the NPV, and making a deal on Paul Isnard might create a win-win situation for both parties involved.