RE: EWAN DOWNIE: Latest SEDI filings From INK report today:
Over the last year, Premier Gold (PG) CEO Ewan Downie has been pretty good at buying around near-term bottoms. Last December he was buying under $4.50 and the stock subsequently rallied above the $6.00 level. As stocks globally swooned last summer, he was acquiring through the market and options. Less than two months later, once again the stock moved above $6.00.
This month, the stock price has been falling and the CEO is back buying. We are not sure of the factors driving the stock lower this time around. The company is planning to spin-out its Premier Royalty Corporation subsidiary into a new publicly traded vehicle and the transaction looks set to be completed within the next couple of weeks. It is not obvious to us that the terms of deal could explain the fall. The key elements have been known for some time. Based on our understanding of the proposed transaction, while Premier Gold shareholders will not receive any new shares in the spin out, Premier Gold itself will retain significant ownership in the relatively cash rich entity.
Meanwhile, more results have been coming in from Premier Gold's Nevada Cove project. In August, the company reported step-out drill results that included 11.75 grams per tonne gold across 20.42 metres (true widths estimated at between 85%-95%).
dv