Waiting NG could certainly go hostile and take this to a shareholder vote. I believe that small caps now have around a three month period in which to respond to such a move. Question is how many shareholders would vote ‘yes’ to let’s say a 50% premium, which presently means around US 0.27.
I know longer term holders (year or more) would be ‘under water’ with such an offer. Further, would Iamgold even allow such an offer. I believe that IAG have a slightly higher holding than NG at around 12% of CGT. Also, would Giustra recommend shareholders (I believe he has a million plus shares (might be wrong here) take such an offer after he has sailed this ship for nearly 10 years?
We would be giving away P&P at around $35 per oz. Way below the more usual $75 + + range. You may well be correct re., a hostile offer, however, I am just not sure how many votes NG could amass beyond their about own 10% holding? More probable they would stimulate a white knight offer, especially if the mine permit was already granted. Doubling a NG offer would mean IAG, Barrick, Newmont or IAG establishes prime mover footing in FG gold production (legal). Would NG really want to have initiated this sort of partnership move?
Just my personal point of view, but I would hope we hold and IF the permit is granted and IF gold goes higher over time as some suggest CGT, SP will climb appreciably. IF (unlikely) it is not bought out and worst case scenario CGT goes down to a 15% share of new mine this would still see a significantly higher SP and potentially a good divvy stock.
Without selling out at a low ball price IMHO shareholders should find over time several good opportunities to sell their holding if they wish, or simply hold for future gains. Only big problem would be if permit is refused!
Re., AUAU, this is really two companies in one. Goldcorp/Newmont exploring the 6 sites that were packaged under their financing and then there is Eastside (Bolo?). The package deal needs one site to show itself worth some serious further drilling; possibly district potential. Eastside is the backstop.
Giustra and Wallace want to see how the ‘package’ pans out. Regardless, then Eastside will be returned to with the aim of a 3 + mill oz resource identifed (money will have to be raised re., JV dilution or private, etc). It already has approx. 720,000 oz resource + 220,000 oz historic and if my memory serves me correctly another 700,000 ozs + that Giustra at the inital resource announcement said was also identified in the initial resource drilling, but was not included in the pit data due to its being outside the limits.
If the package pans out we have two potential companies to JV, sell or spin off, hopefully in a rising gold market). If not focus goes back to the lead potential district site Eastside. I forget who said it (maybe it was Livermore) but often the most money earned is through the most painful, frustrating element of investing/speculating; the waiting.
GLTA
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