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Galway Resources Ltd V.GWY



TSXV:GWY - Post by User

Comment by neinsteinon Oct 31, 2012 1:06pm
234 Views
Post# 20545322

RE: RE: Second Thoughts

RE: RE: Second Thoughts

How is Batista getting 18% of vetas?

1) AUX, in buying GWY, is keeping 10% of the Vetas project. AUX is buying gwy. AUX gets 10% here.

2) AUX, etc. owns 12MM+ shares of GWY. AUX, etc. will end up with the spinout shares just like the rest of us who are long on the record date. AUX gets another 8% here.

On a Vetas valuation - in my opinion it is easily, and conservatively, $100MM+ ($0.60/share) with what they have already drilled. My bet is that further drilling gets them to double that valuation by this time next year. I don't think "the market" has a clear grasp of the grades being hit, and of the simplicity to mine this deposit. Not a bad trade is you assume that you are buying it here for $0.20 ($2.25 minus your $2.05 payment later this year). We'll probably have to wait for the dust to clear on the sale of GWY.

And the moly/tungsten project, which everyone is valuing at zero, look at thompson creek's grades (page 9 - https://www.thompsoncreekmetals.com/i/pdf/Thompson_Creek_Investor_Presentation-10-11-12.pdf). yes the mines are built and the capex sunk but I don't think Victorio is worthless. Especially when you include the tungsten. This will require finding a buyer for the asset, which will take time, but every $15MM they get for it adds another dime a share.

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