Oromin Explorations Ltd OLEPF

Teranga, JV, etc

[mjh9413]

I did not see an answer in subsequent posts but the transaction (MDL to TGZ) was part of the re-org. Teranga holds the 15%.
Now, MDL must have talked to the JV partners before buying the interest in OLE and, as I stated before, based on what was said the intrinsic value given to OLE in the deal was about $1.15.
OLE, unless their Licence has been altered, have to make progress to a mining operation by NEXT MONTH, and I have speculated before that the MDL investment was done as a solution to this requirement, if one accepts that the MDL (now TGZ) exisitng mining operation is allowed to qualify as a mining operation covering all OLE's assets.
Now the price has been beaten back and with current sp movement I suspect we will soon see a buy-out (AMHO) at a slight premium to the original MDL investment in OLE by TGZ. It will be stock or a mix with a little cash but it has to be palatable to JV owners as well as us, but mainly them, unless of course the JV partners really want Teranga paper. If I remember correctly, the jv partners' do not hold an equity interest in OLE but I do not see how this alters the value of their overall interest. (The main point has to be that the jv interest complicates a deal but, as stated, MDL must have tested this before their initial investment.) I reckon buying at these levels, if you want more OLE in your hands, has to offer a minimum 10% short term return, before taxes.

[arlene2]

mjh9413-----I would think everyone would want more Ole shares in their hands at these prices.........Q-1 Resource Update (60-90 days away) should ,IMO , show a doubling or tripling of todays shareprice.....That is short term opportunity to me...

[bluestar]

i agree,the sp should at least double from here. i would guess by end of jan.

[glasrado]

Look at the charts. Finally wonderful.

[iop42]

If OLE joins with TGZ/MDL then we become part of the hedger club - selling gold at the price when the contract was made.  This means big losses when the price climbs and even worse if inflation sets in because operating costs will rise.Sell the ore to them for processing but don't join them.  It won't be a good deal.Then asap start a heap leach mine to satisfy the impatient

[iop42]

p { margin-bottom: 0.21cm; }Basedon todays closing prices, Dec. 13, 2010.MDLpre demerger and post rollback $10.70About$600 million capitalisation.MDLshareholders received 2.632917 shares for each mdl;2.632917times $2.87 (tgz closing) = $7.561demerged mdl $4.99 (can. close) = $4.99 pre-mdlshareholders worth =$12.55 (new-mdl + tgz) Thenew MDL has 60 million O/S shares for capitalization of

[iop42]

here are some links; https://terangagold.com/investor-relations/gold-sales-contract/ https://www.stockwatch.com/market/market_partic_compan.aspx?symbol=TGZ&region=C https://terangagold.com/investor-relations/presentations/ and press releases as found in www.stockwatch.com

[mjh9413]

I like your analysis but it doesn't take account of what exactly pre-dist MDL was being valued on, and adding the two post-dist does not represent all that has happened. TGZ for instance now has $140MM in new cash from all those new shares, plus the cash what was left over from the prior issue (minus debt repayment and the $50MM it gave to MDL.) It is all too complicated for my