RE: Exploration vs. Miningrock stocks, you are using the same false information as many here have been for some time. I trust you mean well and are attempting to shed light on this situation, but the true facts are already public. Arbitration caused many investors to critically look at the Jien/GBK contract details instead of the poorly worded and misleading news releases. Most here know the facts by now, so I hope this recap helps you better assess the risk/reward of GBK. The best way to do this is to address each of your beliefs about GBK.
Re: >> "Goldbrook has extensive land holdings, 95% dead ground, in Raglan. Through a $45M investment (and as we now know there-investment of Quebec Gov rebates) over 3 years JJ get half theproject and get to be operator."
According to the contract, JJ will own 70%-75% of the Raglan project.
Re: >> "Jien Canada Mining own the former Canadian Royalties ground, with a mineunder construction. Goldbrook own 25% of Jien Canada Mining, and sobillions of dollars of ore in the ground."
Goldbrook currently owns less than 2% of Jein Canada Mining, and have never owned 25%. The share breakdown is as follows:
JJ >> Class A Voting Shares: 75
GBK >> Class A Voting Shares: 25
JJ >> Preferred Shares: 236,893,814
GBK >> Preferred Shares: Nil
JJ >> Class B Shares: Nil
GBK >> Class B Shares: 4,750,000
GBK currently owns 4,750,025 shares of the original 241,643,914 shares of the company.
Doing the math... that is only 1.966 % ownership. They are entitled to only 1.966% of the proceeds. If arbitration fails GBK will be entitled to only 1.2% of the proceeds. This is why GBK share price has fallen to book value. Regardless of which way arbitration goes, the difference between the two is less than 1%.
Re:>> "...billions of dollars of ore in the ground."
That may be true, but it's what you have left after expenses that counts. See my calculations below.
So there you have it. Glenerikson is "all in", but he is taking a blind and misinformed risk. I doubt he has done a lick of actual DD to verify any of his claims. It is so simple to do, but for some strange reason most novice investors bet their hard earned money on nothing but repeated hearsay. The market doesn't run on fear and greed Glen, it runs on ignorance and deception.
Here is a fact you all can take to the bank. I did this calculation for Nickel only, so you can do the calculations for the other minerals, add them up and work out a reasonable value going forward for GBK. Since a feasibility study has not been done, I've used the average of $80 from their NI43-101 report for extraction cut-off costs of $40/ton open pit and $120/ton underground.
Total Indicated resources for Nickel: 10,953,000 tons
Cost for extraction and processing: $876,240,000
Available Nickel: .59% X 10,953,000 = 64,620 tons
Recoverable Nickel: 82% X 64620 = 53,000 tons
Life of mine based on 1 million tons/year: 11 years
Net pure Nickel mined per year: 4818 tons average
Conservative Nickel gross calculation: $10/lb X 9.636 million lb (4818 tons) = $90.64 million / year
Cost for extraction and processing: 10,953,000 tons ÷ 11 years X $80 = $79,658,181
Net profit per year of operation for the Nickel component: 90.64 - 79.66 = $10.98 million
GBK is entitled to 2% of that approximate $11 million, or only $219,000 per year!
GBK has about 180 million shares OS. That Nickel resource adds .0012 per share earnings. A generous 20X earnings nets 2.4 cents per share on top of book value. That's ONLY after the mine is built and operating and the resources have been confirmed.
Now do the same calculations for the rest of the minerals and add them all up. That will give you a ballpark estimate of the potential for GBK regardless of arbitration outcome.
It would be helpful if anyone who cares to complete this process posted the totals for everyone to see.