RE: RE: RE: RE: RE: Do not know what to think of t >>maybe the plan is to sell and not do mine start up. bankable feasibility close at hand which would make KGN much more attractive as takeover target
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yes I am sure this is what they have been hoping for.. and us long time suffering holders have been hearing that for years.. but has yet to happen .. if after the feasibility study still nothing.. I think we maybe a cork floating in the big gold pond.. and will just bob along as the market does.. could be why Clarus moved on??<<
A junior that can take its deposit all the way thru feasibililty AND into projection, will realize the maximum upside potential. One such African junior is axmin inc. (axm.v). If you are willing to go to Central Africa, I would recommend Axmin Inc. which is the cheapest (at 1/7th the market cap of KGN) soon to be intermediate gold producer on the planet. 4 million oz of open pittable easy to recover gold with a Bankable Feasibility and an updated BFS already completed and all mining permits in place:
Patience and perseverance set to pay-off for Axmin?
Northern Miner 2012-01-26
Trying to build a gold mine in a sub-Saharan African country that has never had a modern mine is never an easy task. But the process seems to have been particularly arduous on Axmin (AXM-V).
There is little debate in mining circles about the quality of the
company's flagship project. Passendro is well defined gold project that has been subjected to the rigors of both a feasibility study and an updated feasibility study.
But the sound economics and geological potential of the project have been overshadowed in years past by its location. The project sits in the Central African Republic ( CAR), an at times tumultuous country to the north of the Democratic Republic of Congo.
the company has struck a favorable mining accord with the government, regained the rights to the iron ore grounds, and now - most importantly of all - is closing in on finalizing financing that would secure roughly two thirds of the capital it needs to build Passendro.
The latest announcement comes roughly six months after the company announced it had struck a deal with the South Africa's Standard Bank for $100 million.
the company is holding 1.5 million oz. of proven and probable reserves at an average grade of 1.9 grams gold and another 2.03 million oz. of measured and indicated grading 2 grams gold.
The deposit is anticipated to feed into a mill that will turn out 205,000 oz. of gold in its first three years of operation at operating cash cost of US$437.
Using a 5% discount, the project has a net present value (NPV) of $340 million but Axmin's market cap sits at just $34 million. And that's to say nothing of the roughly $10 million in cash it is sitting on - an amount left remaining even after it made an early and final payment to the government of CAR for $3 million earlier this month.
"There's not a decent correlation between where we are, what we have and what we are doing and our market cap," Axmin chief executive George Roach says.
But with the latest announcement that could be set to change.
While the lending institutions didn't want to be named at this point, Roach says they are European-based development agencies with a mandate to encourage economic growth in Africa.
"We don't get any huge favors," Roach says when asked if the agencies offer better terms than commercial institutions. "Although they want to do business in Africa for moral reasons, that doesn't change the fact that they want their money back."
He says the terms offered are comparable to what large commercial banks are offering.
The debt financing deal will be finalized once some remaining due diligences are completed. The key work left to be done is on the legal side, where the process will be for lawyers to confirm the stability and legitimacy of the company's mining agreement with the government and the role that international arbitrators would play in the case of any disputes.
Roach says that legal council has advised that such due diligence should be done by March 31 of this year.