GREY:SGGDF - Post by User
Comment by
Tibberon Mar 12, 2010 11:44am
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Post# 16875992
RE: Just Throwing This Out There
RE: Just Throwing This Out ThereThere is very little chance that Kodiak would buy more of what they already have from Sage .. unless Sage wants to hand it to them. If Kodiak buys any properties it will be one's with proven ounces in the ground (measured and indicated)... This statement was part of their presentation at PDAC.
The future success of Sage hinges entirely on whether they (and Gryphon) can get financing to build the mine. IF the financing is unsuccessful and the JV option is dropped, then there would likely be a fire sale on Sage's assets. Any financing for the project would likely be mostly debt. The market cap of both companies is so small that issuing equity would dillute them another 100-150%.
The longer it takes to secure financing (if at all) the lower the SP will go (especially after consolidation) ... and good luck getting any useful info from IR.