Some thoughts After having slept very well, I'll try to sort out my thoughts.
Yesterday, Cunningham bought the 20% Treaty Creek stake for CAD 207 million. That's the equivalent of $36 CAD per proven ounce.
The market didn't believe in the deal, otherwise the three shares would have risen in the run-up to the news. No wonder, never before has a takeover in the gold sector been paid for with tokens.
The deal will therefore cause a stir and could be the blueprint for further transactions.
Perhaps Cunningham also wants 40% of the project in the next step, who knows?
Ken, the lone voice in the wilderness, gets his work recognised for the first time. Funnily enough, not from a major who secures a share, as was the case with Tudor Mining and Gold Fields, for example, but from Sean Pownall, the driller who has been delivering the drill results at the top of Treaty Creek for years. Sean arranged the deal with Cunningham and he's probably very happy now.
The fair value of Tudor - at 0.43 CAD AMK - would now be 2.47 CAD. A quantum leap after the very poor share price performance of the last two years.
Tudor is now stronger going into the talks regarding possible financing, but also regarding the search for strong partners.
We are urgently awaiting further drill results, perhaps there will be more information to be announced with regard to a PEA. There are two important gold shows coming up from 10 to 18 September, where Tudor will not only be presenting, but will also be sitting at the same table as all the majors. And I can well imagine that the majors will be listening very carefully to what Ken has to say this time. And it would only be logical for them to enter into serious talks now. Because: majors don't need a PEA, they do their own maths, especially when there are NDAs between the parties.
Not to forget: Seabridge has applied for a new licence for the MTT (tunnel through Treaty Creek). A decision from the Gold Commissioner and the BC government should be announced in September.
Yesterday's deal should definitely strengthen the position of the three Amigos. Having a third party set the value of Treaty Creek at CAD 1 billion is a great thing and comes at just the right time. BC has no choice but to move the tunnel (at Seabridge's expense) or to declare that Seabridge has to go into talks with Tudor.
Nevertheless: If I were an AMK shareholder, I would try to buy Tudor as soon as possible to secure the price advantage.
September is and will remain very exciting.