Columbus Gold Corp CGTFF

RE:RE:this stock has a proven story in FG and blue sky in Nevada

[123buyholdhope]

 
I agree. I have tried to understand why a person(s)/entities would sell their shares in CBGDF for lower and lower prices; as you indicate from a Feb high of $0.82 down to a present of $0.52. You can make a good case for a sellout and spinoff in the $1.50 – $2 range in the coming 3 to 6 months. Therefore, it is not unreasonable to suggest a form of legal stock price manipulation/ control here. Nordgold is the most likely protagonist as a 20 - 30% premium on a $0.50 SP is much more preferable from their viewpoint than a SP that could be in the $1 range by now with the recent news. A $0.80 premium SP x approx. 160 mill shares (fully diluted) means a buyout of $128 mill. If you throw in the $35 mill that NG has already spent on their 55% interest, then you have let us say 4 mill ozs (never mind the large undefined potential) picked up by the Russian company for approx. $163 mill., or approx. $41 an in ground oz. This is an absolute steal when you consider that other majors have paid in the range of $100 to $400+ per in ground oz. in past buyouts.

IMO Guistra is looking to sell the CBGDF FG in ground ozs not the company so to speak, so a SP based premium is not what he is interested in. Further Nordgold if they are interested in selling their own ozs would sensibly also try to buy CBGDF ozs first to enable them to sell out the lot. 4+ mill ozs will go for a higher per oz. price than would NGs 55% by itself.

However, if as suggested by Ukermann this SP drop may, in fact, be another potential buyer trying to force down the SP, then I suspect we are in for a bidding battle as NG does not want IMO any partner for this project. Further, if NG wishes to sell out itself then having a new hostile partner would seriously complicate things (I doubt any 45% buyer bar NG itself - would then immediately look to partner with NG and sellout). Additionally, I cannot see IAG (CBGDF's largest shareholder – approx. 13%) allowing 45% or approx 2 mill ozs to go at $41 per inground oz!. IAG and Newmont are the big players (with large coffers) in Suriname and NM in FG. Speculatively, 2 mil ozs at just $100 per oz = approx.., $1.25 per share.

Please remember Guistra has talked recently of the gold exploration field as one of the very few arenas where one can make “…extravagant amounts of money." As indicated in past musings, Guistra does not have to sell and IMO neither should shareholders on any future initial bid made. I can’t remember the name but a company NG bought out in the past saw an initial offer of approx. $0.30 (NG's claimed best offer) and yet six months later those who had refused to sell which was about 20% were finally bought out by NG at approx. $1.40 per share! Guistra is in a very strong position with the financing possibilities and potential buyout contenders. Expect NG will go to shareholders with claims of offering an excellent premium to SP and this is their best offer; spins will be made re why you should sell – possibly even phone calls to shareholders (I’m sure some have experienced these).

Please note NG is the one trying to balance its intolerance for partners, cost of FG mine building, financing for two other on coming mines and large debt payments due in 2018, along with a desire to come back public. IMO NG’s own best bet (to take care of many of the stated issues they face) is to partner with CBGDF to bring 4 mill ozs + (plus large scale exploration potential) to market looking for in the range of $150 – 250 per inground oz. Majors need to replenish their reserves/resources especially in friendly mining areas and they are now looking with present gold prices and 4 years of President Trump for a volitile environment. FG is basically unexplored and the French government (especially Macron) would give this miner major support socially and economically to help jump start the FG economy.

Please don’t allow a falling SP to cause a 'jumping of ship' as IMO there are too many potential drivers that can bring a very respectable buyout price. While hypothetically a 100% premium on a SP of let’s say $0.45 sounds wonderful, for those longer term shareholders it will be a giveaway in terms of what should be coming. Again, notice Eastside is basically thrown in for free with around 1 mill ozs resource (inc historic) already (and not including the approx 700,000 ozs Guistra mentioned as having also been identifed but not even included in the maiden resource. This project could in the long term (2-4 years) be an even better speculative investment than FG 

Please give your opinions for or counter to my viewpoint which is that of a biased long term shareholder.