RE: RE: 10 day average is not long enough to value I agree with CG's assessment of this deal. It removes the uncertainty of VL's future and in the short term should increase the SP of both companies. The value of MOA is not
.30, but 0.4 shares of MOZ. I expect the SP of MOZ to start moving up now the future of VL is resolved.
I have been very worried that the shares of MOA were going to become extremely diluted. It has been mentioned on this board that investing in gold exploration companies is a race between dilution and production. MOA was losing this race in a bad way. I originally invested in MOA because I calculated that their properties had more ounces than MOZ. That was a naive mistake. As I followed both MOA and MOZ I began to realize the true value of Golden Chest was that it was fully permitted and had access to milling facilities. In fact New Jersey Mining previously milled a few tons at a nearby facility. With a positive PEA, development of Golden Chest could be as early as 2013/2014. This does not have to be a big mine, all they have to do is pour enough gold to fund their exploration program without further equity financing. When that occurs the SP will increase by multiples. Look at Richmont Mines. Their resources are not that much greater than MOZ, but they produce some gold and therefore their share float is worth many times more than MOZ. In the race between production and dilution MOZ is much closer to the finish line than MOA. I am very happy with this deal.
WW