RE: RE: RE: RE: RE: Big newsI agree - this is a partnership where both parties win by increasing the SP, and the SP only increases by production of GOLD!
A few points:
--> A 40% interest in the Song Jiagou Project is worth $8M before production. This valuation suggests the Project is worth $20M pre-production. That would be twice the current market cap, pre-production or .11 cents/share.
-> "Majestic has entered into the acquisition agreement to facilitate the commencement of mining operations at the Muping Project"
--> The incentive in paying in shares is smart, and should yield a "work for pay" mentality
--> The agreement states a fixed rate for mining - $11.50 per tonne, so no other out CAPEX requirements from Majestic exist aside from the new mining facilities costs, which are shared as per the agreement, depending on the capacity.
--> The agreement states the % of costs to be paid by both parties for the new mining facility and "no cost, expense or other liability will accrue to or be payable by the JVco, Majestic Yantai or Majestic...."
--> The agreement states "mining operations will be carried ot by Dahedong at no cost to Majestic"
--> The agreement states "Dahedong will also be primarily responsible for dealings wit the Chinese governmental authorities...." (nice to have a local partner to carry out this task)
--> "Dahedong as agreed to commence mining operations for the benefit of the JVco immediately upon receipt "(of approval).
This is a very crafty partnership where a local interest is given shares and the royalty on the property is only paid with proceed "derived from mining profits during the mining term"
Finally, the NI 43-101 is due before the end of March. Do you think there is, perhaps, a sweetener here? Perhaps the new NI 43-101 will have better reserves than indicated in 2006, although Hibbits indicated that it is pretty "spot on"..
Looking forward to tomorrow. GO CANADA GO!
B