Merger DD : Data Comparison Between NexGold And Signal GoldI'm still digging and doing some due diligence in order to evaluate the merge deal proposed between NEXG and SGNL. I know the debate will eventually be more "emotional" when we will approach the voting date, so I decided to post the DD I have done and present facts in a side-by-side table, trying to compare apples with apples. Please feel free to comment if info is not accurate or if you think other facts could be added to this sheet.
If those facts are generally accepted, then we can "debate" which side has the better deal and if everybody gets their fair share of the deal. Hopefully that will help shareholders in their decision process.
| | NexGold | Signal Gold |
| NI-43-101 | PFS (2023) | FS (January 2022 - Phase 1 Only) |
| | • $336M NPV5% and 25.4% after-tax IRR
at US$1,750/oz Au
• $652M NPV5% and 41.4% after-tax IRR
at US$2,150/oz Au
• 1.2Moz extracted gold for a 13 years mine
life with first 9 years averaging 109Koz
• AISC estimated at US$1037/oz
• C$335M initial capex, 2.8yr payback | • $442M NPV5% and 31.7% after-tax IRR at US$1,760/oz Au
• $556M NPV5% and 37.5% after-tax IRR at US$1,936/oz Au
• 1.1Moz extracted gold for a 10.9 years mine life averaging 100Koz/year
• AISC estimated at US$849/oz
• C$271M initial capex, 2.9yr payback |
| Mineral Reserves | 1.46Moz Au equivalent | 1.15Moz Au (Phase 1 only) |
| Mineral resources | Goliath complex (US$1700 GP; US23$ SP):
• OP: 1.8Moz M+I and 756koz Inf. Au equivalent
(Au cut-off at 0.3g/t Goliath and 0.25g/t Miller)
• UG: 362koz M+I and 28koz Inf. Au equivalent
(Au cut-off at 2.20g/t)
Total: 2.95Moz | Goldboro RE (US$1600 GP):
• OP: 1.42Moz M+I and 66koz Inf. Au
(Cut-off at 0.45g/t)
• UG: 1.16Moz M+I and 478koz Inf. Au
(Cut-off at 2.40g/t)
Total: 3,124Moz
*underestimated: lot of drilling done after FS (which suggests a third pit west) |
Financials As
Of June 30 2024 | • $114.1M assets
• $5.8M cash and cash equivalent
• $18M in liabilities (in which $8.14M convertible
debenture maturing on June 30 2026) | - $68.5M assets
- $6.6M cash and cash equivalent
- $27.7M in liabilities (in which $19.7M Nebari credit facility maturing on February 25 2025)
|
Other deposits/
targets in the area | • Testing the 25kms strike between Goliath and Goldlund deposits | • Western extension toward Dolliver Mountain: latest 5,179-metre diamond drilling campaign's high grade results not compiled yet (but promising).
• Goldboro gold district: several targets around the designed Goldboro open pits: Fowler (east) and Stewart (north) were targeted for exploration this summer. |
| Other properties | Niblack: VMS type deposit in
Alaska with around
800koz-900koz Au equivalent | Tilt Cove in Newfoundland: exploration-stage gold-copper with 11,000 hectares of prospective mineral lands including a significant property package covering 35 kilometres of high-potential strike length including the Nugget Pond Horizon ("NPH") |