RE:RE:RE:RE:RE:RE:RE:Headwinds=opportunity Roro1 wrote: Massaw works very well if it involves a JV - and perhaps financing from DM (that gets him to 29'%?), not to mention his influence in the area. The bottom line is that the proximity and mill make Massawa potentially a huge play for TGZ - if done right. So I don't think it's a distraction at all. A JV involving Barrick is also a nice hedge. Massawa is a great opportunity, and the mill and DM make a favorable deal quite foreseeable. I also think we'll hear something soon - and believe that Barrick and TGZ have been talking for quite some time - because realistically, TGZ is the only "real" game in town.
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The divestment is part of Barrick’s, the world’s second largest gold producer, drive to dispose of non-core assets.“While this iconic gold mine has been a valuable contributor to Barrick over the years, the asset does not fit with our strategy of operating mines that we own,” the Canadian gold producer said in a statement. https://business.financialpost.com/commodities/mining/saracen-to-buy-barricks-share-of-australian-super-pit-for-750m
This would seem to illustrate the fact that Barrick is intent on limiting the number of JV's it gets involved with going forward, preferring instead to divest of partially owned mines, and only getting involved in new mines when they are both large, and fully owned and operated by them.
This raises several questions:
Does TGZ have the borrowing (or equity raising) capacity to develop a fourth mine?
Is it prepared to divest of any of it's mines in order to focus on Massawa?
Would Barrick be prepared to take back paper instead of cash?
Will TGZ's largest shareholder put up any cash to fund an acquisition, infrastructure, and new mine modification/buildout?
If indeed TGZ is the only "logical" buyer of Massawa, how far down in price is Barrick prepared to go?
MM