RE:NewsPaulriedi - First, I hope you're right as I can live with the stock decline even though it's obvious someone told their best buddies a financing is coming and at a nice haircut to the price just a few days ago.
Here's the present deal TGZ has with them:
Teranga Gold Corporation (“Teranga”) (TSX: TGZ) has an earn-in agreement on the Golden Hill and Gourma Gold Projects with Boss, pursuant to the following salient terms of the joint venture:
- Teranga currently owns 51% interest in the Golden Hill and Gourma Gold Projects;
- Teranga to sole manage the joint venture and fund all exploration on the projects up to the completion of a DFS and Decision to Mine;
- Boss to have a free carried interest to completion of a DFS and decision to mine;
- On delivery of the DFS Teranga’s interest in the joint venture will increase to 70%;
- Teranga has the right to acquire an additional 10% in the joint venture for A$2.5 million;
- Upon completion of the DFS but prior to a Decision to Mine, Boss may elect to convert the remainder of their interest to a 1.5% Net Smelter Return, otherwise Boss shall be free carried to a decision to mine and will then be required to contribute on a pro rata basis; and
- Pre-emptive rights stipulated should a third-party offer exist.
Assuming Boss wants to focus on their uranium stuff and/or need cash to do so, It explains why TGZ can't do a stock deal and is doing a financing (assumption obviously that's the reason for the sell-off).
It also would explain why our major insider has been out of the markets for months as you can bet he will be a major part of any financing. I agree if the deal is done right, it's pain short-term for benefit long-term.
Here's to you being right and not something bad. I would say you are and why the company hasn't made a comment yet but given how poor Moran and Young are on the IR side of things, nothing would surprise me on how they handle communications - a skill neither is well versed at IMHO.