Columbus Gold Corp CGTFF

Metals & Mining Industrial Metals & Minerals

"Columbus Gold Corp operates in the gold mining industry. The company acquires, develops, explores and evaluates gold in French Guiana. It owns two main projects and other projects. Montagne d'Or Gold project which is comprised of eight mining concessions and Eastside Gold project hosts a large area of shallow oxide gold mineralization. It principally operates in three geographical areas those are Canada, United States, and France."

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Columbus Gold Corp > Stunning 75% loser ~ one year

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Comment by 123buyholdhopeon Jan 14, 2019 3:20pm

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Post# 29229479

RE:RE:Stunning 75% loser ~ one year

Not sure why CGT did this placement. Afterall, they still have plenty of AUAU shares to turn into CGT administration cash for the next 2 years. Do they know something about AUAU and did not want to touch those shares (Newmont wants to buy Goldcorp a 10% holder in AUAU)? Maybe CGT wanted cash now to fund that $2mill they have to provide within 2 years of the start of Iamgold Maripa option.

Yes, it is interesting that NG bought much of the private placement. Obviously, they did not want to be diluted at all? Clearly, CGT had no problem in filling this private placement. Wish I knew who bought the remainder (wonder if it was it Giustra’s relative Frank who is in to all sorts of metals and I believe bought into CGT some years ago in another private placement?). Clearly someone(s) see a $0.40 twelve month warrant as a good bet. Even with the dilution $0.40 would be way below the value of this mine to a CGT buyer.

Also, I’d like to know why we have not seen the ESIA report out? I thought it was out by the end of December 2018? I would have thought that French authorities would have wanted to have read that before pronouncing on the rest of FG gold exploration. Also, I think such a report would have to contain the infill drilling results ended last March and as of yet not revealed by NG. Those might add signifcantly to CGTs P&P.

Remember worst case scenario is that there is no buyout by a third party or a mine build buy in by CGT. If diluted by NG mine financing below 10% then CGT goes to a 2% smelter royalty. However, if my memory serves me correctly and after 5 plus years in CGT everything is now starting to blend, no buy in by CGT re., building the mine means NG would have to spend at least $500 mill on the mine to dilute CGT down to a 10% share. Doing nothing could see CGT still become a very nice divvy stock which would also continue to propel their Maripa exploration.

Still a lot of 'if's out there so just my two pence worth. GLTA https://twitter.com/EarthsRare