RE:RE:RE:RE:Where my heads at First, I agree with Lambo’s assessment and his total of 12+ M Ozs and that they are in discussions to sell now. The only thing I see delaying a deal is the appearance of competitive bids coming from the latest USCG offer sheet pdf.
Although USCG has likely given the board a value assessment, there will be another FA hired to give a final Fairness evaluation as USCG would likely be seen as biased based on fees and commissions they will receive on closing.
As for a large capital injection or joint venture, I would be shocked if that happened. The complainers seem to want this but they are the same ones that scream dilution when they get a PP for $2-3M. A $50-100M would be real dilution. Yes, every cash injection/dilution is based on the hope that it will pay dividends greater than the percentage of investment in a much more valuable company with more proven ounces and de-risking. But they scream anyway.
For those complaining about just 2.5M Ozs, this is just the amount confirmed by drilling that they could do an MRE on right now. At 2.5M ozs and the possibile 12.5M ozs this has become a serious mine that gets the attention of the majors. A 10-20000 ton/day processing plant would give a mine life of 10-17 years just based on the 2.5M ozs. Take that to the 12M Ozs and you are looking at a 40+ year life of the mine before you go underground. The value of the 2.5M ozs is, after extraction costs of about $800/oz, $4.75B and $28B at 12.5. And that's just at the current $2700 gold price and not the future $3-5000
As to the calls for more drilling to produce an MRE, we already have more than enough to produce one. Snoline Gold was a company mentioned in one of the videos about exploration companies coming into their acquisition timing and they commented on their having an MRE of 7M Ozs. That MRE from Feb 24 was based on just under 28K metres in 68 holes. LME, as of 2023 in the merit report, had 44K metres in 154 holes and after the current drilling we will have over 50000 metres and over 160 holes, so there are enough holes for an MRE. But as I have said before, anyone paying billions for LME are going to do their own MRE And Feasibility Study instead of trusting the sellers calculations.
As for my hyping of the SC/FA hiring and deal coming because they hired them; I WAS WRONG. I wondered at the time why they had announced them as it is never done when they are in negotiations. The team was obviously put in place to work on the list of potential suitors and not to negotiate a current offer. That said, I am currently of the belief that something changed at the end of Aug through to the end of Sept and that we are now in the “31 day” timeline.
Cheers