RE:Whoa!I hear you, the deal is not a home run.
The IRR on the Barrick feasibility study was around 37% at a GP of 1400. That was after they had spent almost 100 million to get the project to that point. The mine was going to cost another 400 odd million to complete in several phases. So 400-440 million plus the cost of some upgrades will mean that Massawa now benefits mainly TGZ and not Barrick.
I was particularly impressed at how this was structured, TGZ was close to biting off more than it could chew but managed to create a plan with all the stake holders that was well thought out and does seem to have all the right checks and balances for all parties including exisiting shareholders.
This potentially takes TGZ to 500K ounces a year in a quicker time frame without Golden Hill having to get them over that hump. This was a great short term win. With Gold Prices where they are, I think it was time to strike, if we get to 1550-1600 an ounce, I do not think this deal gets done.
If you compare the value to others in that area like EDV, TGZ, still looks undervalued.