RE:RE:Reserve Report for Argentine assets2008 Q2 F/S
“In August 2007, Americas issued 6,000,000 common shares to acquire an additional 20% interest in the Totoral, Yerba Buena and Bajada Colorada concessions resulting in a total interest in the concessions of 71%. The transaction was valued at $2,779,373.”
GRO now holds 90% interest of Totoral.
Public_Heel wrote:
Thanks for that, yyc. I really should have found that and read it before I put up my estimates of
liquidation value. That report is a good deal worse than I expected. Pre-tax Proved NPV10 of
$2.4m? I doubt an acquirer would give more than $1m for that. And that value is assuming the
Argentine government continues to pay far above world market prices. Heck, if you want to
assume that, there are other companies that would make better investments, President for one.
As for all the other properties, it's hard to believe they'd get more than pennies on the dollar.
In my estimates of liquidation values, I had Argentina at $5m, but that neds to be trimmed to
$1-$2m, and the estimate of maximum liquidation value down to 25-29 cents.