OTCPK:MAGNF - Post by User
Post by
eztwo1on Dec 03, 2009 2:34pm
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Post# 16551233
Low price? No reasons?
Low price? No reasons?Here's one possible reason from last month's release...
"The sheeted vein system continues beyond the pit boundaries, alongstrike as well as laterally into the pit walls, and to depth,suggesting the possible presence of a significant gold deposit. Theproject has never been drilled although recent channel sampling in thepit returned values including 48 metres of 2.77 grams per tonne goldand 35 metres of 3.81 grams per tonne gold. No mineral resource ormineral reserve estimate has yet been prepared by Magellan or thevendor."
No resource or reserve est. by Mag. or vendor. Nice production numbers, but what happens if they disappear?
9 MILLION US to buy 51% seems hefty when you consider that MNM doesn't have the money. A "raise"..you bet....
However, the 45 day? DD period may also bring some more reflection before MNM gets 51% of the production that the vendor is so willing to sell into a jumping gold market. 6 MILLION US more is required to be spent by MNM over the next year..along with "selling" (no price given) 49% in Uniao.
Creporizinho project? No resource or reserve estimates either by vendor or MNM? With a a rather large PP needed for funding? Strange that the market is hesitant???? More strange is that some don't bother reading releases ....
MNM could be a much better buy in a few weeks. As it stands, investors may be looking elsewhere. The stock price reflects the situation.