RE: RE: RE: 11.5 Hi Cayp21. I too have seen this before and I would not be surprised if the sp goes higher than you think. We don’t get to see too many large world class mining projects from early exploration stages to final mining production. Erin has been going through the negotiation processes with all the potential JV companies, it would be interesting to know some of the financial terms associated with the 3 letter of intent/interest.
I remember watching another big mining project (Voisey’s Bay) and noticed how quickly the price rose once investors started to recognize the potential. The point I would like to make is that Teck secured a 10% ($108 Million) share of Diamond Fields before the total reserves were known ($108 million looks like a bargain considering the final buyout offer of $4.3 Billion)
The mining project was the Voisey Bay project.
Nov 17 1994 –Assays from discovery drill hole #2 were announced at 2.23% nickel, 1.47% copper and .123% cobalt over 33 meters. stock price jumps from $4.65 to $8.00 overnight.
Feb 6 1995 - press release on holes #7 + 8 (#8 was 111m) the average for both #7+8 was 3.7% nickel. The stock price went to $20.
April 14 1995 - Teck secured a 10% ($108 Million) at $36.00 / share of Diamond Fields before the total reserves were known .More assays are released. The stock prices rises past $40.00.
May 9 1995 - INCO’s geologist estimates the ovoid’s ore reserve at 25 million tons, with a 10% chance its bigger. Takeover speculation moves stock price up to $56.00
Sept 21 1995 - Stock is almost at $100 and DF did a 4-1 forward split with the new shares valued at $24.00 each.
Feb 1996 - Drill tests indicate the ovoid has reserves of 30 million tons and there was potentially twice as much in the second ore body.
April 3 1996 - The final 4.3 billion-dollar buy out draft is signed.
Using HighPh calculations for Erin Ventures: (1) A profit margin similar to the borate producers (i.e. Eti Mines) : $6B X .75 = $4.5B
Erin Ventures’ market cap : $12m
Piskanja’s Net Asset Value in the ground : US$22.50 share price (4.5B/200m shares)
Jarondol deposits - 96% still unexplored - ??? million tonnes.
Show me the money!