Gold Is At $1940 US! As everyone knows, CCW is still doing an analysis of the Granada bulk sample that it did at the TTL lab mini mill located at Cobalt, Ontario.
This is just my speculation for now. But if this processing of the ore from Granada results in a reasonable profit for both companies, Granada and Canada Silver Cobalt, then we may be on to the next phase of this operation.
Granada gets some of its ore milled. CCW gets a well paid, toll milling fee!
Management at Granada plans on issuing Class A shares redeemable 36 months after the closing date of the proposed private placement for proceeds of up to 25 million USD. Furthermore they also intend to offer Granada common shareholders an option to convert their shares into a secondary class B share, valued in proportion to the original $31.10 private placement, one month prior to the redemption date of the class A shares. If their common share price doesn't rise much, they get less. If their share price rises higher, they get more!
This management group are very astute financiers! And of course, they know how to explore properties and operate mines! This same management team runs both companies operations.
Perhaps in the future, both companies will benefit greatly by having this combined management team, working as one? That might make a lot more sense!
Perhaps these companies should merge, so they both could grow, much more quickly, together as one?
https://stockhouse.com/news/press-releases/2023/06/06/granada-receives-regulatory-approval-for-listing-of-class-a-redeemable-preferred Financial success with the bulk sample results will be critical for both companies, who hope to advance their property development plans, as quickly as possible, without any further significant, share price dilution!
At today's $1940 US gold price, the production of 75,000 ounces of gold from Granada would produce revenue for the company totalling 145,500,000 million USD. What if the gold price, rises much higher?
That's a real good return of investment capital that would pay off the original preferred shareholders easily! It would also allow current day, disgruntled Granada shareholders, an easy exit strategy, to redeem their optional Preferred class B shares, soon after the original Class A shares have been fully redeemed.
Naturally, any cash derived from the toll milling of any Granada gold ore at the TTL facility could upfront any remaining exploration and/or permitting costs at the Castle mine or Castle East operations. Again this could happen without any further dilution of CCW shares!
Toll milling costs for miners can be a significant expense that must be substracted from any potential profit from the miner's revenue stream. But it would also represent a significant tax deduction for Granada MInes. And $145 million USD, or more, goes a long way to pay off any future, upcoming operational costs!
Just something to ponder!
All the best! Java