RE:dealcashtango00 wrote: the company and paid letterwriters can spin this deal anyway they want. The reality is SGC was put over a barrel on this one. The government knew they had them in a corner and this deal is not great on a valuation at all. For the risk and capital outlay SGC has made to get here, the Eritrean government has 40% of this play and got it VERY cheap.
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I agree! The article writers and investors on this message board tried to make it seem like Enamco paying 1/3 of future costs is a big deal. This doesn't benefit the company nearly as much as people think considering Sunridge Gold will lose an additional 30% of their potential future revenue on this project in exchange for selling Enamco a 30% stake on the project. Plus costs have gone up over 30% since Nevsun began construction on their project. If you do the math on this deal it does not add up.