I'm not impressed Absolutely reticules considering :
A: all the time and money that went into the project over the last 4 years to make it into an recognizable company
B: The timing to sell at a good product for a fire sell price at times when the speculation is more on the site for a raising gold price, kind of very short sided. They must be desperate.
C: there is no PEA I'm sure that the buyer has these data.
Part of a news release from MGP in Dec. 2014
Quote
"In addition, a forthcoming PEA analysis will further assess the potential to establish economically viable mineral resources of both gold and tungsten that can be permitted, mined and processed."
Unquote
Never saw that PEA maybe missed it.
The board and the management must know the real value of the property.
D:Lets assume the MB contains the following amounts as stated in the last report and see what the evaluation could be
2.2 M M&I => US$ 66'000'000 C$ 80'000'000
0.9 M I => US$ 18'000'000 C$ 21'000'000
Total Value => US$ 84'000'000 C$ 101'000'000
The base for calculation are average values for gold in the ground and the conditions of the MB project is definitely within this average or better with all the given Conditions. ( Political stability & Infrastructure) it definitely looks better then the meagre 17M
Averag price for Gold in the ground
• US$20 per ounce Inferred
• US$30 per ounce for M&I
• US$160 per ounce for P&P
E: if you listen to the interviews and looking at the he presentations from Glen Kunz he must have been devastated hearing about the deal ( unless a very good opportunity was looking at him within the new Company which he would deserve if it happens.)
But it is difficult to understand why a deal from the MGP Board was so quickly accepted without the forecasted PEA and PFS 2015 Na FS for 2016 be presented .
These are usually important parameters for the investor to evaluate the company and as mentioned above according to the existing reports the estimated value is still way above the present offer.
This statement is of course according to incomplete data but makes one think about the reality of the offer made by the bidder.
The rest of the MGP projects are not even considered. Maybe that is a bonus to the buyer.
Maybe a spin off of MB and keep the rest of the properties within MGP.
An offer of about C$ 0.30 could possibly be considered.
I do not see a point to congratulate the Board / Management for a job well done.
This has the looks of the Wall Street Junkies and somebody sometime will make the expected profits on this Venture but it want be the retail investor.
IT