per share value comparisonif a 20% ownership of Treaty Creek is currently estimated to be worth $40 million and AMK's fully diluted number of shares is 493 mio,
than the per share value for AMK is 8,1 cents... TUO's per share value will be 80 cents for 49 mio shares fully diluted
stockzorg wrote:
If TUO is considering a spinout of its 20% ownership interest in Treaty Creek while retaining the NSR within TUO, it would make a sale transaction much more clean and straightforward.
My expectation is that a JV partner will want control over 100% of the gold in Treaty Creek and would want to buy out AMK gold as well. AMK also has an NSR although they have already sold off 25% of that I think.
Newcrest paid a bit more than $21/oz for the Red Chris Au equivalent, but most of the near-surface gold is already mined - Newcrest is a block caving specialist.
My back-of-the-napkin calculations on the total amount of gold in the ground so far is up to around 7 million oz. (3 million near-surface and 4 million at depth). At $31/oz. the deal could come in at over $200 million, with $40 million going to TUO or about $.80/share. Tunnel rights would add another $10 million, making the deal worth about $1/sh to TUO.