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Oromin Explorations Ltd OLEPF



GREY:OLEPF - Post by User

Comment by hoosier1on Apr 16, 2013 4:03pm
155 Views
Post# 21260277

RE: How cheap is the OJVG?

RE: How cheap is the OJVG?

tony - I wouldn't count on it...

I have spoken to DS, as well... did so about a little over a month ago (told GF about it).  Oromin's stance is simple... they are not going to give away the asset, period... regardless of how bad the overall junior market is/gets.

Even if a major(buyer) offered a 50% premium above the current share price, it isnt' justification for selling... that's pretty close to a quote (& we were trading around $0.50).  Whereas, DS didn't give an exact sell point, my impression was they might settle for somewhere north of $1.  They do not need to sell and can wait.  They know most of the majors have declining resources and will eventually need more... so they'll wait.  They believe they can outlast others

Whereas the current price of gold has fallen... I find it interesting that back in Dec of 2006, when gold traded below $650/oz, and OLE didn't have the reserves like today, Oromin traded around $1.80 (yes I know there's been dilution).  We all exclaimed how great it was going to be when gold hit $1000.  Even with $1300 gold, the value & assoc margins are still significantly above past.

There's a huge disconnect between the majors and the juniors... eventually someone will blink.

h1

 

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