RE:RE:Merger DD: Missing Updated FS Study For GoldboroGrumpyInvestor wrote: Hi DDD,
You said :
"It's unfortunate that we do not have an updated FS, or at least a new Ressource Estimate for Goldboro prior to decide if the merger deal is the best one. I think that there could have been some positive factors for us."
-------------------------------------------------
Unfortunately, we have no other deal to consider besides the current one. It's not a question of choosing the best one amongst a couple of deals. It's a question of deciding if this deal is better or worse than the alternative, which is hoping a better offer comes along quickly before we run out of money and risk losing Goldboro.
A part of the deal I really like , is the removal of the near threat that the Nebari debt represents for the survival of SGNL. At today's share price, you would probably have to dilute the shareholders by more than 50% just to clear that debt.
You have to realize that SGNL launched the "BMO process" because it considered it could never bring Goldboro to production by itself with the current market conditions for junior miners. You have to think that management considered all possible options and that the deal with NEXG was truly the best deal we could get.
As for an updated FS, we all know the numbers would go up, but I doubt that it would impact our share price by much. The market valued SGNL at 0,08$ because it feels it will never be able to raise the 400M$ to get the gold out of the ground. Increasing the amount of gold will be great for a company that is solid enough and big enough (multiple projects) to show a credible path to production. I feel this is what we get with the proposed merged company.
I here you guys... but I just think you have thrown the towel too fast here. I'm continuing my DD. I'm not done yet.
Thanks for your comments.