RE:RE:RE:RE:RE:RE:RE:NEWS! Skeena Sells Assets for C$8 MillionFormless wrote: And that is the only potential upside I see. but Newcrest took Skeena to the cleaners when SKE dod not need the money yet. And I thought Newcrest would very likley be the buyer, and Skeena might do a combo deal for 40-60milion alone or combo 60-100million, They sell GJ and ~5-20million shares for big chunk. That said, this is not a big chunk of cash and kinda defeats the purpose of the statment in the PR saying thye are selling to reduce dilutions, when in fact, giving shares away for a stratigic investment right now is a dilution. I would have just done the stratigic investment and held on to GJ for the time being and sold for a fairer price later. I mean, really? They could not even get what they orignally paid for it, let alone all the years and investor losses and heartscahes and the millions of expense and work they put into it? This can not be spun as a postive IMO, I wish I could, i am the biggest Eskay fan, but this sell price is a head scratcher. And if they do a stratigic investment anytime soon, with just saying they are selling to reduce dilution that does not fit. Also in theory they have 10million warrants as well which will be exersised so that is also dilution, though most of us already count that. cash 15million + 10million warrants + 5million here is 30million cash for 2020, not bad, but about what I expected for low end. Selling GJ fot so low makes higher dilution a larger possibility, I though minimum they would get 20million, original price + cost of work SKE put into it. I was wrong.
If this porject with ~1billion NAV in tier 1 location and low CAPEX sells for 8million CAD, I question every junior worth even more than before.
If we are honest with ourselves the valuation given to Skeena right now is not for what it has discovered up to now at Eskay Creek but of the future prospect of finding 10.0 or more million ounces. And if they ever decided to sell Eskay Creek before advancing it much further, the value of Eskay Creek would probably fetch 10 cents on the dollar. So we should be excited we still have a market cap of about $140.0 million. There is a huge premium attached to the share price right now.