Columbus Gold Corp CGTFF

Official JV to develop M d'Or

[eebler]

https://www.marketwired.com/press-release/columbus-gold-enters-into-formal-jv-with-nordgold-develop-montagne-dor-gold-deposit-otcqx-cbgdf-2234971.htm

[AltaRounder]

eebler: Thanks for posting. Haven't been checking in lately because I wasn't expecting to hear anything until ESIA was completed in 4 Qtr.  Happily suprised to see a construction deadline has been put in for Dec 18th. Not that Nord would start spending to build but they might make a move for CGT soon after. GLTA

[eebler]

Speculating that the negative market reaction may be due to a couple of things: - failure to see a definitive buyout offer materialize - recognition that CGT is going to have to come up with funding for the build, which puts a big financing/dilution variable into the pot I had noted back in April/May that, notwithstanding any material construction decision, the price could drift into the mid/low

[goldstd69]

any way you look at it this is costly for Columbus Gold...a bad deal...I am out...jmho

[ukermann]

Not so sure about that. Keep in mind once the spinco deal goes down you get a "free" share for every 5 you own. Something of value as they begin to define that property. Next would be the value of FG as a stand alone project. If we elect to dilute ourselves to raise our share of capital, the risk of a failed project is large if the market for the metal stalls or falls for any length of

[grape562000]

If Nord builds the mine, Columbus gets slow rolled. Winds up with 10% of mine production + 2% NSR (in 4 years) If Columbus sells their 45% to a party who wants to invest in co-developing the mine with Nord, this seems like the best path forward and I expect this is the most likely outcome.at about $100M. So, right or wrong, those are my assumptions. What I do not understand why people are not

[grape562000]

And to someones earlier point....what major would 'not' be interested in acquiring of low cost high grade ounces plus exploration potential to expand the resource by buying out Columbus stake? It seems to me that many would. We shall see.

[ukermann]

Here's a copy of the original agreement with Nord that took place back in 2014. The way I read it, if we don't fund we're still in for 25%. Am i not understanding something?? Columbus Gold Signs US$30 Million Definitive Option Agreement With Nord Gold on 5.37 Million Oz. Montagne d'Or Gold Deposit, French Guiana MarketwiredMarch 14, 2014 VANCOUVER, BRITISH COLUMBIA

[grape562000]

It is explained here (I found this in other documents but decided to post this as it contained other relevant commentary.) https://goldnewsletter.com/go/columbusgold/index.php Basically, Columbus stake in Montagne D'Or (of they do not participate in its' development) is dependant on the cost to build the mine. If the mine costs $560M and Nord funds it themselves, Columbus would be

[grape562000]

So it seems the market is basing Columbus current valuation on the $366M projected mine build cost ($400M scenario) which gives us 18% of $450M NPV (at $1200 gold). And then nothing more for the Nevada assets or Montagne D'Or exploration/growth/expansion potential).