RE:RE:Critical investor article…Thanks Red,
I haven't really thought about the amount Newmont would have to pay to get back in. I thought this was a new comment in the article:
Once Gold Terra completed the option, and outlines 5+Moz Au, Newmont has 18 months for a one-time back-in right for 51%, subject to 3x expenditures and paying US$30/oz Au, which could imply a nice paycheck of at least C$250M in cash assuming Gold Terra gets there.
Can someone comment on a couple questions if they have time?
1. How many total shares do you think Ygt would be at to discover the 5M OZ?
2. What would Newmont's buy in look like? Would there be a dilution with shares created for Newmont? If the article said $250M for the buy back of 51% what would be the approximate new share price? Any other comments that you would like to add too?
3. Is there a depth of mine where it would become unprofitable? Obviously if they can prove resource below 2,000 m the potential is crazy if its still profitable. The two deep holes might be the most interesting of the winter drill.
Just thought I would ask if anyone would care to speculate.