RE:RE:Just out of curiosity, is "keeping spain" a good thing?Treetop, your post is well thought out. I went back and looked at Progafa's post which I have attached below. It doesn't clearly say that any money will go to the stockholders. Management can't develop Lom Poy without funding so management (Fifer) will want the Panama payout to be in cash to the company and not a stock swap with FQ. Definitly would not be a good thing to have Fifer running Lom Poy development. So many issues arise from your post that it's hard to put them in logical order. It's especially hard when what's actually going to happen is unknown. But that has never stopped me from speculating so here goes.
First of all, I think the majority of stock holders no longer trust Mr. Fifer, and maybe that extends to the rest of Fifer's management team. The well has been poisoned so to speak. I would hope that as soon as a cash buyout was completed, Sprott and other large investors would move to oust the current management. I'm probably being naive but like you said, continuing with Fifer would only lead to another disaster.
The new company would be worth cash on hand plus something for the inferred ore at Lom Poy. The first priorty of the company would be to obtain a NI 43-101 that moves the ore at Lom Poy from inferred to measured and indicated and from there to proven and probable. That would involve completion of dewatering the mine, completing the access ramp, and drilling the mine from the inside. I don't have any idea of what that would cost. Then a plant to process the ore would have to be built. MJK estimated it would take three to four years to complete that process. I have no reason to disagree with his assumption, however, I note that the molejon plant was operational on a limited scale two years after start of construction.
Assuming the buyout is for cash at 60 cents a share, then we get about $130 million for the new company. That seems to be enough to upgrade the ore body to proven and probable and develop an economic feasibility study and get started on building a processing plant. Of course, operating in Spain is more expensive than in Panama so I don't know if $130 million is enough to get us to the point of processing ore. I suppose if we have a NI 43-101 listing proven and probable reserves and an economic feasibilty study from Dol Behr (excuse my abbreviation) then we can borrow enough money to complete the processing plant.
Like goldpet and others, I would like to get my investment back now and not wait three or four years in a new risky investments for a payoff. But that alternative is better than the bankrupcy we face now.
Treetop. You must be a good chess player because you think several steps ahead of us. Thanks for slapping me up the side of the head again and making me think.
I have a small amount to invest in speculative gold companys and if you have any recommendationsyou'd wish to share please feel free to do so. Thank you again for your excellent posts.
| Progafa |
Thursday, 10/24/13 10:51:37 AM |
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| Post # of22401 |
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Yes its coming. 60 day time frame. Peta will be out of hands of RF and we will get paid for that. Apart we will keep the iberian stuff and hopefully get some upside or cashout after. But we will be fine with the Panama take out. Two pronged deal is the most likely. Take out leveld should be handsome and significant premium from even these higher levels today.