RE:RE:RE:There are many ways to look at this...The latest drill results don't show a whole lot of potential for expansion of open pit mining in the immediate area of pit 1 and pit 2. They may encounter some amazing potential when they drill the recently acquired properties. For a huge investment I think expansion potential is extremely important.
Whoever buys them out, will have to have lots of money. I say that because to buy the company and give shareholders some decent price. I will say 30 cents. Fully diluted that is well over 250 million shares. So say $85 million for shareholders. Plus the $30 million in debt. So over $100 million right there.
To finance the building of the mine, they will likely need about $130 million equity in order to borrow the rest.
So it is about $250 million they would need up front to get started on building the mine, and to take on close to 300 million in debt likely.
I think they could probably have sold it at a higher price before the last $12 million dollar drill project. I understand why they did that, with having high hopes for the results.
I think the most important thing is the ability to expand the project for a buyer/investor/partner. There is no data to suggest the underground reserves could be profitably mined.
As I stated, I have no idea if this is cheap or expensive. And my opinion doesn't matter. It is the opinion of the companies who are in their data room.
The same stock traded at $1 and at 7.5 cents. Who knows what it is worth to any suitors. Certainly not me, that is why I don't know if it is cheap or expensive.
I googled gold companies that built a mine with 1 million ounces open pit available with a higher grade like sgnl has. There are several,, and many did very well. Most of those had a high probability of expanding the resources.