AUQ + MGMtaken from their last nr - year end numbers
Work completed on the El Sastre Main Zone and El Arenal Zone has been incorporated into a new Technical Report which will be released shortly.
if this report comes out and shows a significant increase in indicated resources - how can MGM be a equal with 7m$+ debt
from the Q&A about the merger
Q: How does Aurogin – which is debt-free – justify taking on Morgain’s debt?
A: This comes back, at least in part, to the fairness opinion that both Companies are looking for. However, both Management and Board teams believe that this debt is manageable, particularly given the strengths of the combined Company as well as the cash flow that is to be generated once both mines are fully operational. It is worth noting that, based on the information in the recent ACA Howe report (October 20, 2006), the existing accumulated debt for the Castillo project could be paid off from one year of cash flows from that mine at a gold price of $550 per ounce.
fairness my a$$ - pay off MGM debt with the oodles of money AUQ has from producing gold before the merger
so this boils down to the fact AUQ doesn't have as much gold as they touted or it costs more per oz to recover than they had originally hoped for - therefore MGM with 7m$ of debt is a equal
this also explains issues that they had with the OSC and the repeated delays in releasing something with substance that would drive they share price to where it should be