Monument Mining Ltd V.MMY

Gascoyne, Firefly, WestGold and Murchison

[nozzpack]

https://www.fireflyresources.com.au/wp-content/uploads/2021/06/709.FFR-Presentation-Merger-of-Gascoyne-and-Firefly.pdf 

The above link  will take you to the presentation details of the merger between Firefly and Gascoyne.
WestGold , as an alternative, has offered to buy Gascoyne for $105 m which Gascoyne has rejected..but it aoint over yet.

Gascoyne has the best mill in WA but very limited low grade ( 0.8 gms ) economic resources remaining...., 2 years.....until it must spend $60 million to cutback the current pits.

Hence, the need for Fireflys 196,000 ounces at 1.45 gms per ton to keep it producing for another several years @ 75,000 ounces per year.

Firefly will own 32.6 % of the Combined market cap of $155 million or about $52 million
Firefly does have expoloration potential and is 110 km from the Gascoyne mill.

So, $52 m divided at 196,000 ouncws is about  $265 per ounce of gold in the ground.

Our Murchison has over 500,000 ounces at a higher grade, plus a mill, heap leach and a nice JV with ODY and a major resource upgrade drill program under way.

Much more attractive to Gascoyne, imo, than Firefly.

Westgold wants one more acquisition to complete its WA domination or so it said in 2020.

Now, if I were Chairman of MMY, I would contact Gascoyne and enter negotiations for an alternative  deal, replacing Firefly with Murchison.

WE should get at least $75 million in putative merger with Gascoyne, and be trading on the ASX with a TSX listing soon afterwards.

But, my best foot forward would be  a full merger of MMY and Gascoyne including Seliising on an equitable share basis that would be no less than and probably higher than the $105 m being offer by WestGold.

We would end up with 4 producing mines........Gascoyne, Selinsing Floatation, Selinsing Oxide and murchison that would reach 115000 ounces by mid 2022 and probably exceed 150,000 ounces in several years.

In my opinion,  Gascoyne  at $105 million is an absolute steal if WestGold pulls it off by umpiring its offer.

IMO, it is a golden opportunity for MMY to enter alternate negotoiations with Gascoyne.
We have nothing to lose if we fail.

We have heaps to gain if we  reach an equitable arrangement.

And we have Dato who knows Western Australia and its mining industry quite well