Taiga Gold Corp. C.TGC

This Ship has Sailed IMHO

[BamBam76]

As an Eagle Plains shareholder I got some shares in the inital 2018 spinout, and then ultimately building up to 1 million shares.  Really dissapointed with the outcome here.  Though I suspect management didn't have much choice.  Tim Termuende made a statement in an interview a while back that Taiga was significantly undervalued around $0.20 ... and I really don't think he meant 0.06.  I think management knows it is less than an ideal deal.  This could be "the one that got away".  Just the fact that they haven't done an excited video about how great of a deal this is says alot.  What this is, is an opportunity for a $4-5 million pay out for Eagle Plains to put into other projects and for shareholders to exit with some money.

At the end of the day, Taiga is really at the mercy of SSR because they have the only operating mine the Fisher ore can go to.  Who wants to wait until another partner gets interested enough in the Fisher property to explore and ultimately build a new mine 5, 10, 20+ years from now?  Plus look at SSR's news feed and all the interests they have around the world.  The last thing Taiga wants is for them to take attention off the Taiga property and but it on the backburner for a couple years ... which they can afford to do.  I think SSR has always strategically downplayed the value of the Fisher property in their news releases ... barely a blip on the screen even now.

Raising shares and going it alone is just something Eagle Plains / Taiga doesn't do.  Extremely risky especially considering the lackluster results that were just released a few weeks ago.  It's the luck of the draw ... those results could have just as easily been high grade and we might have a different result now.

Looking at the way this deal is apparently structured, Taiga paid out Leland $900k and has a $1.5 million poison pill for backing out of the deal.  Bascially Taiga's treasury is gone if they back out now ... and then be prepared to wait for a while for another pay day opportunity that may not be any better with significant dillution.  The only ray of hope is the clause allowing for acceptance of higher bids ... but what company is going to put more than $27 million on the line here? 

This was well played by SSR.  I personally think the "ship has sailed".  I sold most of my shares at the current levels to take the money and move on.  The worst thing that could happen at this point is for the deal to fall through.  What would the price go to at that point ... I don't have a crystal ball ... but I don't think it would be pretty.  And who would run Taiga after the deal falls through?  The management unamimously agreed that this is the deal to take.  That would take a lot of wind out of their sails.

The real take away here is that I may have to re-evaluate the shares I hold in Eagle Plains.  I need to think on that one a bit.