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Teranga Gold Corporation T.TGZ

Teranga Gold Corp is a Canadian-based gold company with assets is production, development, and exploration situated on prospective gold belts across West Africa in Burkina Faso, Cote d'lvoire and Senegal.


TSX:TGZ - Post by User

Bullboard Posts
Comment by andybradley93on Jun 30, 2013 9:45pm
177 Views
Post# 21582333

RE:I seem to have hit a nerve (among OLE shareholders)

RE:I seem to have hit a nerve (among OLE shareholders)Treetop,

Regarding the suggestion that you correctly stated "OLE wil not receive a premium buyout".

As it turns out, you were correct.  But the full story needs to be expressed.  You were correct because the offer made in December of 2011 by Teranga at .058 of a Teranga share at prices in December 2011 would have netted Oromin a very nice buyout premium.  Roughly $1.35 or so.

For reasons not yet fully disclosed by Teranga or Oromin, reasons that may never be disclosed, that deal was never consummated.  So your statement about being correct, albeit true, was not based upon sound judgement which was the point behind my first response to your post about voting NO to the purchase of Oromin.

Without Oromin and Bendon, Teranga will be trading for the pennies that Oromin now trades....that opinion is not only mine, but an opinion shared by research analysts at several firms.  The satellite deposits around Teranga will not support the investment they have made in Senegal, notably a mill at the cost of $400 Million, give or take.

Furthermore, no matter how Teranga proceeds, dillution is a matter of fact.  They have 59 million csah, not enough to fund without the authorization of shares.

AB
Bullboard Posts