RE:OBM on my radarThere's more to NioGold than its M&I resources. They have a reasonably strong 43-101 already at Marban, and an updated resource estimate will be published in late February - we should see an upgraded resource at that time. Beyond that, their location is very strategic - their proximity to the Canadian Malartic mine. The ore at Marban is of a higher quality (softer) than across the road at CM - after the resources is updated in late February, there's a very good chance NioGold can cut a deal with CM - to sell them ore or do a custom tolling agreement. This would make NioGold cash-flow positive far sooner than if they had to build a mine.
Remember the people involved - Robert Wares, Sean Roosen, John Burzynski - these are some of the most prolific mining men in Canada, if not the world. Management is key.
It might seem that Oban overpaid for NioGold, but the real value will shine through in the coming months. In my opinion, Oban is on sale at the moment but everyone will need to make their own decision.
As for the PP, perhaps additional acquisitions are on the horizon, and cash is being offered, so they're taking it while it's on the table. Perhaps contact the company and ask them outright.
- MM
Yamana. Either sell them the ore or get them to do a custom tolling
agreement. Because the ore at thier Canadian Malartic Mine (the previous
Osisko mine) is very hard and lower grade, oure softer rock will be easier
on their ball mills and the higher grade would allow them to increase
production, so there is a good chance we can make a deal.