Columbus Gold Corp CGTFF

RE:RE:RE:RE:RE:News - December 11 - The Allegiant Spin-Out Date.

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The private placement of Allegiant is priced at 60 cents per share, plus a 2-year warrant exercisable at a dollar. If Allegiant is worth what is being asked in the PP, then the Allegiant portion of a Columbus share is worth at most 12 cents. You get one share of Allegiant for every 5 Columbus shares in the spinout.

As far as what the Russians would pay for the French Guiana minority interest held by Columbus, you can bet that it will be quite a bit less than what many would value it at - certainly far less than C$1.85. The future price of gold is the largest variable. Unless the Russians want to make a very good offer, Columbus should not be in a hurry to cash in. The two parties are stuck with one another, and will eventually need to reach an agreement, which I assume will be an asset sale, not a joint mining venture.  The total value received by shareholders should be well in excess of the current share price, but the timing is uncertain.