Great Bear Resources Ltd. GTBAF

Here's the thinking on GBR 2.0

[Goaweigh]

If we were to come up with a maiden resource of 5,000,000 Oz. on only a portion of the 4,000 meters of the LP fault and it became very obvious that we were heading to 20,000,000 + Oz. on that 4000 meters do you think a major is going to take the remaining 18 KM's of strike into consideration when making an offer ? Maybe pay us double ? Or maybe more to the point, if a major were to make an offer on a 20,000,000 + Oz deposit contained within a 5,000 meter land package would they give two shites about the 18 Km's down the street ? Would they pay much more to own that too ?
I don't think so, it would get lost in the deal.

Here's the theory.
Let's say we come up with the above scenario of a 5,000,000 Oz. maiden contained within what appears to be a 20,000,000 + Oz. potential resource on a 5,000 KM land package. 
And let's say the stock goes to $ 20 until we prove the rest, and then it goes much higher of course.  
At the same time we announce that we are spinning off a new co. GBR 2.0 to hold and explore the remaining 18 KM's. Remember that new Co. is coming to us, we get the shares of GBR 2.0 
So what would happen to the share price of GBR 1.0 ?
Would it totally collapse ? or maybe lose a $ 1.00 or $ 2.00 for a nano second if even that long ? 
And once GBR 2.0 were to come public with 18 KM's of strike adjacent to a 20,000,000 + Oz. orebody what would that do ?
Well I suspect it would certainly make up for whatever drop in price GBR 1.0 experienced for the loss of those 18 KM's of exploration upside, if it lost anything at all.
 
In fact I think GBR 2.0 would be wildly popular because so many people would want to buy it after having missed out on GBR 1.0 and it's 20,000,000 + Oz. deposit.
I think the dam thing would open at $ 2.00 minimum and probably go to $ 5.00 + on one hit ! 
GBR 1.0 just isn't going to get that kind of response. 
So any loss to GBR 1.0 would be made up for in the value of GBR 2.0 and it doubles the upside.

Can you imagine the leverage when a major takes out GBR 1.0 at $ 50 per share and GBR 2.0 announces a hit just down the road !   
  

Am I the only one with vision here ! 
Sheesh. LOL !

[CdnBadger]

All they have to do is continue to fence post and demonstrate that it is in fact one big predictable system and build a resource off of one section of it and achieve what you want. Hey I'm all for maximizing our profits but I don't think what you're proposing is necessary. I'm open to the possibility I'm wrong. At the end of the day Chris and team who are in the industry and

[lechmeir]

"I'm thinking I take a portion of the winnings and put into the major that buys them out " That's some pretty sharp thinking...

[CdnBadger]

Consider this...Every percentage of dividend I get from the company is essentially propped up another 2% from NSR. A nice 5% return plus the 2% would be a nice 7% run long term. Not assuming 5% but the added 2% will help whatever return.

[Lookingforclues]

So for 10,000 shares what do I get. Per annum!

[CdnBadger]

Probably around $500

[Lookingforclues]

Great minds I think.........$500?  Is that it?     Whatz people on about then?

[CdnBadger]

5% On shares you no longer own. I'd say that's pretty damn good. Assuming my assumptions in regards to price of gold, production and that net means after costs. My assumption being $250 which is very conservative I think. In my head it's this: Production ounces times after production profit per ounce times .02 divide by shares. (500K x $250 X.02/50 000 000 now times your 10k)

[Lookingforclues]

Sorry I don't get u....Can u spell it out for 10k per year! Someone said $500.  Ty. S

[Canuck11]

I went through the calculation myself a couple of weeks ago, but i used $1500 gold and the industry average of $900 production cost because we have gold close to surface (your lower profit margin I'm assuming is the Red Lake mine production at 2500 m depth). So for every 100,000 oz mined, we see a profit of $600/oz or $60M total $60M * 2% NSR / 50 M shares o/s yields 0.024 per share or $240 on

[Goaweigh]

It isn't net profit it's net Oz. produced. Say that Newmont takes us over and eventually produces 500,000 Oz. from our claims, our share of that is 2 % or 10,000 Oz. per year. If the POG is $ 1500 that's revenue to GBR Royalty Co. of $ 15,000,000 per year gross but of course that Co. will have operating expenses such as rent and payroll so the net will be lower, maybe $ 13,000,000 So

[CdnBadger]

I thought that was the case but decided to error on the side of caution which is why I mentioned "assuming my net is right". Thanks for clarrifying.

[bobzuruncle]

This post has been removed in accordance with Community Policy

[Lookingforclues]

Repeat...10,000 shares.  How much would I get yearly with the 2%? Approximately?  Lots of guessers here!

[Lookingforclues]

You got it Pontiac!  Ohhhhh Mr Badger!  Ty

[Goaweigh]

Let the Newmont shareholders look after themselves. These multi million oz. district scale deals  come along maybe only once in two lifetimes so let's make it count !  Have you no greed man ! LOL ! You be the nice CdnBadger and I'll be the aggressive HoneyBadger !  I've been doing this for a long time so this deal has to make up for some past dumb mistakes and a few

[CdnBadger]

Perhaps the previous mistakes are a result of greed and impatience? I'm smart tenacious greed. :P (friendly teasing) Naw, I get you. I'm all for whatever will maximize our returns and perhaps your suggestion is it but I suspect it's not necessary. Time wil ltell but until then don't get all sticky and stuck in your honey becasue this Badger isn't licking you clean. Maybe grab a

[Lookingforclues]

I think your 'exuberance' is clouding the issue. We GOTS DA big hit on a great Company, with seemingly intelligent people running it. Give us $50 per share and I shall Do a Dance!  Ty