GREY:SGGDF - Post by User
Post by
ss1867on Dec 10, 2013 2:12pm
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Post# 21990957
MAYBE SOME LIFE
MAYBE SOME LIFENR states they can acquire remaining 40% interest in Clavos but they gotta come up with a million bucks by the end of April to secure rights, then they still gotta recommission the mine with a capex of over $14 million. If your in the camp that believes gold goes higher from here, this may all work out. If you believe tapering is coming and the POG will be under pressure early next year this could be tough sledding. Either way you have to give management credit for getting a deal on the table which isn`t so easy to do for a starving junior in a challenging, volatile environment. Options - major dilution, debt financing, private influx of capital, off-take agreement, JV with someone with deeper pockets, out right sale. If Sage can secure the needed funds to seal the deal there might be some life left in this dog yet. My bet is major dilution, and then after the dust settles the inevitable share roll back.
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