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Baru Gold Corp V.BARU

Alternate Symbol(s):  BARUF

Baru Gold Corp. is a Canada-based junior gold developer with NI 43-101 gold resources in Indonesia. The Company is focused on developing and producing precious metals projects in Indonesia. The Company’s focus is on developing precious metals projects with significant resource upside potential and near-term production capabilities. The Company’s Sangihe Gold project mineral tenement consists of one block covering the southern half of Sangihe Island, located between the northern tip of Sulawesi Island (Indonesia) and the southern tip of Mindanao (Philippines). The Sangihe Project covers 42,000ha; this includes the Bawone, Binebase prospects on the eastern part of the island and Taware prospect in the south-central region with infrastructure in place. The Company has a 70% interest in the Sangihe project.


TSXV:BARU - Post by User

Bullboard Posts
Post by ez33on Jan 28, 2011 1:58pm
301 Views
Post# 18041682

1;2 share split would be best

1;2 share split would be bestA newco built around singhie would start of with in the neighborhood of  0.0225 ozs of gold resources per share versus 0.01125 ozs per of gold share if it was spun off from eas at 1:2 ratio. Subsequent dilution to finance the growth of the company would be less expensive because the newco should have twice the underlying value coming out of the starting gate. Hawkins is sitting in the cat seat and has a better idea of the potential of singhie then most. He is also experienced enough to know dilution is the silent destroyer of value in the junior mining sector. A 1:4 split would be the most value enhancing spin out in my books. Throw in $2 or $3 million cash to drill 5000 -10,000 meters and we won't have to go to the financiers and have them scorf the value out of the property and its potential that shareholder money has already built...
Bullboard Posts