Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Signal Gold Inc T.SGNL

Signal Gold Inc. is a Canada-based gold development company. The Company is engaged in advancing the wholly owned Goldboro Project in the Canadian mining jurisdiction of Nova Scotia. The Goldboro Project is an advanced exploration and gold development project located approximately 175 kilometers (km) northeast of the city of Halifax, 60 km southeast of the town of Antigonish, and 1.6 km north of the village of Goldboro, on the eastern shore of Isaac’s Harbour, in Guysborough County, Nova Scotia, Canada. The Company has consolidated approximately 28,525 hectares (285 km2) of prospective exploration land in the Goldboro Gold District.


TSX:SGNL - Post by User

Comment by shiftyoneon Apr 07, 2024 4:42pm
105 Views
Post# 35975800

RE:RE:RE:There are many ways to look at this...

RE:RE:RE:There are many ways to look at this...The latest drill results don't show a whole lot of potential for expansion of open pit mining in the immediate area of pit 1 and pit 2.  They may encounter some amazing potential when they drill the recently acquired properties.  For a huge investment I think expansion potential is extremely important.

Whoever buys them out, will have to have lots of money.  I say that because to buy the company and give shareholders some decent price.  I will say 30 cents.   Fully diluted that is well over 250 million shares.  So say $85 million for shareholders.  Plus the $30 million in debt.  So over $100 million right there.

To finance the building of the mine, they will likely need about $130 million equity in order to borrow the rest.

So it is about $250 million they would need up front to get started on building the mine, and to take on close to 300 million in debt likely.

I think they could probably have sold it at a higher price before the last $12 million dollar drill project. I understand why they did that, with having high hopes for the results.

I think the most important thing is the ability to expand the project for a buyer/investor/partner.  There is no data to suggest the underground reserves could be profitably mined.

As I stated, I have no idea if this is cheap or expensive.  And my opinion doesn't matter.  It is the opinion of the companies who are in their data room.

The same stock traded at $1 and at 7.5 cents.  Who knows what it is worth to any suitors.  Certainly not me, that is why I don't know if it is cheap or expensive.

I googled gold companies that built a mine with 1 million ounces open pit available with a higher grade like sgnl has.  There are several,, and many did very well.  Most of those had a high probability of expanding the resources.
<< Previous
Bullboard Posts
Next >>