RE:RE:RE:RE:RE:agree that both offers arent great!
michaelvim wrote: auq has 250 million shares O/S. If they want the asset issue 7-8 million shares $33 million- $38 million and its a done deal. Its really not a big deal!
LOL - 38m is not a big deal, so like QE is not a big deal?
clearly you fail or don't understand the value of money overtime... 8m shares today at 38 million the upper end of your number is not the same value 3 years from now, just because it works in your favour today that doesn't mean aurico would - like I said aurico is sophisticated because they actually know how to manage and have cash flow.
think about it this way - let's say if you're going to buy a car for 50k and the dealer is offering it to you for 2% would you pay down the full 50k today or pay it down at 2% for 3years? You'll be saying to yourself - I'll take the car now and pay it at 2% interest - take that 50k and invest it to beat that 2% while still holding on to your capital, you can buy any gold stock like an Aurico or any dividend paying stock that yields 5% - who's winning? you're winning.
The solution for CGJ and its shareholders is to put themselves up for sale in full not this deal they wrote up with aurico that only provides shareholders 30-35% exposure to production, nevermind where gold is going to be 3 years from now - there's no exposure to it for CGJ shareholders, all they did was buy themselves time with the 5m they got and collect their own paycheque that's all.
If and when gold rallies back say to 1300 aurico's stock could trade up to 5-6-7 while CGJ could still be at 8c - being pegged to aurico's PP deal at 8c. Aurico can offer up 10c in Aurico's stock for all CGJ stock it doesn't already owned and they'll still come out on top because they've managed to peg it at 8c while still allowing their own stock/paper to rise so why dilute for 8m shares while you can do so 4m shares or less? that's how mgmt should act in the best interest of their shareholders which aurico clearly did for their own shareholders not CGJ shareholders, sure CGJ mgmt gets paid their salaries and all but you don't get paid.
and if gold falls back to sub 1000 - aurico still wins, while they spend 5m today as dibs into a multi million ounce property that other 20m they need to spend to be operators is spread over 3 years, they can use their cash flow.
I'd rather take 9.6c today and tender to Nord Gold's offer than wait on 10 or 12c 3 years from now from aurico that may or may not come to fruition. I personally don't see a 15c bid coming from Aurico for reasons above.
but that's just my opinion, it's not like I'm telling you anything that you or most of you don't already know.