Are We the Only Act in Town???Sure, we fit in well with Sino Gold and have Synergy's, because we are in the same locations as they are. This is one of the main reasons why I like this deal. But contrary to many beliefs here, we are not the only act in town, or in China.
Sino Gold does have Refractory Gold Ore, but they don't need our BioGold Plant to treat it as they already have access to Gold Fields Patented Bio Treatment Plant, and now getting some 80% Recovery.
A Refinery and a Seat on the Shanghai Gold Exchange is nice, but is it worth C$73M? Two properties with a known total of 1M oz of M & I Resources is nice, but again is it worth C$73M in China, when this possible mine is not been proven feasibly?
We all know that the Gold Mining Industry in China is highly fractured, with some 2,000 miners, and as a result Sino Gold's $100M in CASH can go a long way there.
According to the "Vicarage Capital Report", there is 50 International Gold Mining Companies currently working in China. From this number only 4 are producing gold from their mines. Presently, 5 juniors, including ourselves, are in the midst of a Feasibility Study.
So understand this clearly! Sino Gold does not need money or want a Strong Asian Partner in China to do well, as they already do very well in China! But from what I see, and from what our management said and did, we are the ones who need one!!!
We are the ones who went banging on their door begging for money, when our shares were trading at C$0.60. We are the ones who gave them our keys to our Data Room, in hopes they would show up and look. So even for one moment, don't think that Sino Gold came chasing after us, because the reality is, we went chasing after them.
As Gary Stein said last January we are looking for a strong Asian Partner. So this was not only an approved deal by the Board of Directors, but instead a deal they sought after, and went after, and in my honest opinion got what they felt, at that time, as the best one. And I will support them on this 110% on this!!!
You can either follow these Yahoo's, who preach a "No Vote" based on nothing more than a Big Mouth, or our management, who took the time to researched all possible scenarios, and did what they felt was the best solution for us. I personally, will go with them, and as always!
GB