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Goldgroup Mining Inc V.GGA

Alternate Symbol(s):  GGAZF

Goldgroup Mining Inc. is a Canada-based gold producer and is focused on the acquisition, exploration and development of advanced stage gold-bearing mineral properties in the Americas. The Company’s primary gold production and exploration and development related activities are conducted in Mexico. It owns a 100% interest in the operating Cerro Prieto project in Sonora. The Cerro Prieto project, located in the Cucurpe Mining District, Sonora, Mexico, is composed of the San Felix (205 hectares (ha)), San Francisco (10 ha), Elba (5.82 ha), Huerta de Oro (20 ha), Reyna de Plata (9.79 ha), Cerro Prieto North (2,508 ha) and Argonauta 6 (4,120 ha) mineral concessions.


TSXV:GGA - Post by User

Bullboard Posts
Comment by massivemeltdownon Mar 09, 2010 2:10am
524 Views
Post# 16859236

RE: RE: RE: PDAC

RE: RE: RE: PDACI've done my DD here and don't like what I see and would recommend anyone invested, or looking to invest in any company do their own DD before making any investment decision. 

I wonder if management looked at an outright sale of the company as an option to maximize shareholder value.  IMO, this transaction is really a means to maximize Goldgroup shareholder value rather than SIM.  You continue to refer to the "independent" valuation while the market continues to discredit the same..  1.26? 1.07?  Try 1.00 and even at that they are receiving more than 50% of the NewCo so I feel the valuations are are actually efficiently represented by the current share price.  Notwithstanding any new developments you can have all my shares at 0.38 this week.  Much like the rest of the board of pumpers who have offered to purchase my shares I suspect we won't see a bid much above 0.30 but please, please prove me wrong.

I believe there is potential for Goldgroup's properties, unfortunately we have went from producer back to prospector and imo, the risk is not worth the opportunity cost for SIM shareholders based on this proposed transaction imo.   There has been so much disclosure by mid cap producers looking to acquire projects and companies like SIM - and the fact is a cash offer of 0.35 (or equivalent share exchange which is validated by the market) would be superior - especially given the current market valuations by the market.  How you can claim risks are significantly mitigated with the independent valuation - is confirmation that you have your head in the ground as much as you make the claim of my perspectives.  It holds very little comfort for those shareholders that are looking at a 0.28 bid as of yesterday's close...far from the 0.38 let alone the 0.44 valuation you and the analyst continue to tout.

Lastly you criticize TML management for supporting their company share price which I find amusing since SIM management seem content to let this "lucrative" arbitrage opportunity remain.  The lack of support, imo, validates my theory this is merely a method for insiders to gain control over a profitable producing mine without having to make the purchase in the open market.  If the subscription was so overwhelming received why not raise enough funds to make a cash offer of 0.35 for SIM?  This would have my FULL support but again, the strategy imo, is to disguise the means to the end versus making a legitimate effort to put SIM into play.  Purely my opinions and I would concur EVERYONE needs to perform their own DD.
Bullboard Posts