RE: ConfusedBecause 25% of an undeveloped rock pile is worth 25% of an undevelopedrock pile ..
Jien/GBK just paid 192+M for CZZ .. They get the rock pile and the 15M CZZ had on deposit .. It will cost 480M to build the plant and at this point they have yet to come up with a way to ship the ore ..
GBK does not have enough holes to justify a true value at this point on it's own rockpile ... so how could it borrow on it for their 25% of the 480m (120m) for the plant ... and continue to raise $ to drill
So the question is .. Just what GBK will get out of this in the end as they will have to trade it all away to Jien to just hang on to scraps at best .. Yes Jien Canada is a private Company not accountable to share holders so maybe they will take GBK for the ride .. but do you really think so .. 53m buys out GBK today ..
These are forward looking statments :-)
I think having just been able to make a little $ on a stock I bought at $4.00+ (CZZ) by trading on it's volitility over the last six months .. riding this GBK horse seems weak ... now I am all in for a $.10 momo play now and then .. but to many factors are against the CZZ rock pile being much of a gain to GBK in the long term ..
JMHO
I think I will pass on this ticket for today .. but who knows about tomorrow :-) ( This seems like an Ontario lottery .. only the providers will hit the jackpot )