Kaiser says Shore Gold
Shore Gold Inc
Symbol SGF
Shares Issued 72,234,550
Close 2005-03-21 C$ 6.15
Recent Sedar Documents
Kaiser says Shore Gold and its holders sitting pretty
2005-03-21 20:44 ET - In the News
John Kaiser, writing in a March 6, 2005, Express, says Shore Gold Inc. (then $7) stunned the market on March 4 when it announced a $100-million bought deal consisting of 18.2 million shares at $5.50. Mr. Kaiser said buy in May, 2002, at 80 cents. He said sell 25 per cent in February, 2005. A $1,000 investment, including the recent 25-per-cent sale at $5.09, is now worth $6,370 in shares, at the current $7, and $1,542 in cash (because selling one-quarter of the full investment yielded $1,542). He now says hold, or in Kaiser parlance, Shore is "maintained as a Spec Cycle 75% Hold." The underwriting syndicate has an option to buy another three million shares at $5.50 up to 48 hours before closing. An even bigger surprise is that gold miner Newmont Mining Corp. is buying just under half of the offering to end up with a 9.9-per-cent equity share of the company. Mr. Kaiser says this is an extremely positive development for those who bought at 80 cents because it creates a medium-term floor on the price. The junior is now more than adequately financed to complete the next exploration stage for the Star kimberlite, namely delineating a tonnage resource large enough to justify mine development.