Columbus Gold Corp CGTFF

Add to the Speculation

[123buyholdhope]

I have read with interest the recent entries discussing the possible buyout scenarios for CGBDF. I have no legal knowledge in this area (or any other) but it seems to me that if Newmont, Barrick, Kinross IAMGOLD or whoever wants this 5 mill ozs (possibly more) then they might take the risk and bid for the entire CBGDF French G goldfield before the BFS presentation (by March 2017). A bid would represent some risk here (ESIA not out till 2^nd ¼ 2017) but these majors as a previous entrant pointed out, are not adverse as they have shown in the past to taking calculated gambles.

It is my understanding that NG does not legally take control of the 50.01% of the FG field until they actually present the BFS; until that moment CBGDF still holds 100% interest in the property (the 5% sold by CBGDF vests to NG with the BFS). Without the BFS NG would be just another shareholder with about 9%. I don’t see NG out bidding some of these other mining giants if they come in and consequently NG may only be eligible for FG costs, maybe some compensation and the value of their shares held (those with legal expertise in mining ventures please correct me if my understanding is way off base).  As indicated in a previous writers entry a $100 oz bid = $500mill; $300 per oz is $1.5 bill. With a share balance of approx. 150 mill., we are talking $3 - $10 CBGDF share price.

Further, Barrick and Newmont (Kinross?) are in competition for attractive gold prospects in Nevada. Potentially, one of these majors might see a complete takeout of CBGDF as making the most economic sense before the FG BFS arrival (and also more exploration ozs being identified by CBGDF in FG). Such a move would not only give bidders access to NG potential ozs in FG, but also see the acquisition of a Nevada site that is being explored (under CBGDF contract) by one of the most famous and successful exploration companies/leaders in the USA – Cordex/Andy Wallace. With 1.25 – 1.75 mill ozs (dependent on grade) inferred already with only minimal drilling (less than 2% of total area), Eastside must look very interesting to those majors. In fact, if the bidding for the FG ozs are in the $150+ oz range Eastside might even be seen as a very enticing and added extra just to sweeten the bid.

Consequently, CBGDF shareholders might wake up one morning in the next two months to find an amazing jump in share price due to a major’s bid. However, if all this speculation is just ‘blowing in the wind’ then that share price jump may simply take a lot longer to occur with a CBGDF FG buyout and an Eastside spinoff, which itself will also be probably bought out down the road. Either way I think that CBGDF shareholders’ patience will eventually be well rewarded. JMHO