Northern Miner mistakeI finally got around to reading the latest Northern Miner and it's article on the G-VIA deal. I noticed the same mistake that many seem to have made in the first few days after the deal was announced. "The fraction of a Goldcorp share (0.4) would be accompanied by half a share in a new public exploration vehicle, New Virginia, with each of those shares estimated to be worth $1.23, based on fair market value..."
Be careful this is incorrect, the press release clearly states "the transaction values each Virginia share at Cdn.$9.87 plus the value of each 0.5 of a New Virginia share estimated to be Cdn.$1.23"
0.5 NVIA = 1.23 therefore 1 NVIA = 2.46
Based on todays closing with G = $23.64 VIA should be $10.69. VIA closed at $10.5 which is pretty close, you get a 1.8% premium if you buy VIA shares assuming NVIA will commence trading at 2.46. Last week the premium was much greater.
I also think NVIA will trade higher than $2.46 - there will be $1.24 in cash for each share plus a NSR worth maybe another half buck. That leaves $0.75 unaccounted for, or $18.75 million based on 25 million shares outstanding. Is a company with the best properties and the best exploration team in the James Bay area worth this little? What if you add in 100,000 easily accessible oz's of gold at Poste Lemoyne? The Orfee zone at Poste Lemoyne is at surface and is one kilometer from the road, with a small pit and a mill nearby (Goldcorp's) you can make $300 per oz. at current gold prices. Yes that's $30 million for digging a hole no bigger than a typical suburban back yard.
LaGrande sud has more oz's but they're harder to get at.
Then there is Corvet which is optionned by Placer and is looking good according to my sources. They havent announced any results yet and they probably will not until the deal is done but it looks promising and drill will turn this winter.
Then there are all those other red blotches on the map that aquarius likes so much. Those are all VIA properties and there are many more not indicated on the map.
So all in all the 10x profits have been made on this stock but IMO there's no sense selling now because there is more upside to G shares and at least $0.5 per NVIA share not factored into the current price. Of course maybe you need you new found wealth to buy that promising penny stock that you've had your eye on.