RE: RE: RE: CAFTA - Paciifc RIMI thought that Remance would have been further along by now. Shame on me for being lazy and not calling/emailing the company to find out for sure. No matter, I still have faith and am significantly long. Regarding valuation, here’s my quick and dirty.
151 million shares fully diluted. Assume that future funding and the expiration of options & warrants offset future equity funding and that cost for the CAFTA arbitration/suit will be performed on a contingency basis, deferring the cost to a successful outcome.
· “The Company remains confident that it will either receive the El Dorado permit and mining concession or that it will be appropriately compensated.”
Scenario 1: GOE allows mining permit
1.7 MM oz. M+I+I @ $104/Oz = 177 $MM / 151 MM shares = $1.17 per share
Scenario 2: PMU wins GOE suit
88 $MM /151 MM shares = 58¢ per share
Neither price puts any value on Remance which if secured appears will probably add a health premium to the price. Assume 25 $MM upon securing the property (17 ¢ per share) and an incremental 50 $MM upon validation of the premise described below (33 ¢ per share). All told, anywhere from $1.08 to $1.67 per share probably within a year. In other words a minimum 5 bagger on a non-risked basis. Let’s not forget who’s behind this stock and the ground they must feel they have to makeup – they are not your typical Howe Street hacks.
· "We have been evaluating and pursuing the Remance project for over 9 months," states Tom Shrake, President and CEO, "and are extremely pleased to have secured this exciting prospect. Remance hosts a large epithermal gold system and has many of the same characteristics that our El Dorado project in El Salvador exhibited when we first began work there. Like El Dorado, the Remance epithermal system appears to be largely preserved from surface erosion and virtually unexplored at depth. Outstanding projects like this are extremely rare.
· “The Company intends to proceed with its acquisition of the Remance Project by signing a Formal Agreement as soon as practicable, pending confirmation by the vendors that the Remance concession expiration date has been extended (a routine application permitted under Panamanian mining law). If, as and when the Formal Agreement is signed, the Company intends to conduct a minimum 10,000 metre drill program at Remance as per the terms of the binding letter of intent. The Company anticipates that its exploration plans as outlined above will cost approximately $1.0 million.”