Geologix Explorations Inc GIXEF

San Augustin project sold by Silver Standard

[FabCH18]

Before Tepal, Geologix focus was the San Augustin project in Mexico. They had an option with Silver Standard to purchase it after some work (they got resources estimates of around 4,7 mio ozs of AuEq without lead and zinc). Bad luck, they had to finance the purchase (34 mio$) at a time when nobody would do it just after 2008 crash... and SSR didn't accept to postpone any delay...

With just a few work on the property, Silver Standard has just sold it to Argonaut Gold for around 220 mio$ (altogether):

[url=https://www.argonautgold.com/news_events/index.php?&content_id=140][/url]

Soon after Geologix purchased Tepal. I bet Geologix management learned a lot through this painful failure and that they will get their "revenge" with Tepal next year !

Cheers,

[hammer161]

Not sure where you get the $220M figure. I add up the terms of the deal from the press release below to a total of $75M Under the terms of the agreement, Argonaut Gold will purchase San Agustin for aggregate consideration of: • $15 million cash payable at closing; • $30 million of Argonaut shares issued at closing (based on the 5-day volume weighted average sale price for Argonaut shares trading

[FabCH18]

Stock price of Argonaut is around 5.5 CAD, therefore 30 mios of shares * 5,5 = 165 mios. I didn't include the 2% NSR which increase the sale price (as soon the ounces are produced). They have around 4,5 mios of AuEq resources. If they produce 3,5 mios of AuEq ounces, Silver Standard would get 91 mios during life of mine (price ounce of gold 1'300). So the total sale is more around 300

[hammer161]

The deal includes $30 milllion dollars woth of shares NOT 30 million shares. The NSR is a condition of the sale not part of the price.  

[FabCH18]

Thanks for pointing out my misreading about Argonaut shares  ;-) Cheers,