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Bullboard - Stock Discussion Forum Great Bear Resources Ltd. GTBAF

Great Bear Resources Ltd. is a Vancouver-based gold exploration company focused on advancing its 100% owned Dixie project in Northwestern Ontario, Canada. A significant exploration drill program is currently underway to define the mineralization within a large-scale, high-grade disseminated gold discovery made in 2019, the LP Fault. Additional exploration drilling is also in progress to... see more

OTCQX:GTBAF - Post Discussion

Great Bear Resources Ltd. > Buyout Deal structure
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Post by Ignoranus on Dec 12, 2019 1:37pm

Buyout Deal structure

CT stated that this could have a 50-60 year mine life. Given that the later years would be greatly discounted in a takeover valuation, wouldn't the following be a better deal for the shareholders? Break the property into two segments with 25-30 years of productivity; or three segments with 17-20 year mine lives? This should generate a higher total price because the mine life is not so far out that all of us, and the dealmakers, will be dead by the end of sixty years. It avoids the deep discount that will be applied to the later years. OK posters, shoot me down!
Comment by Goaweigh on Dec 12, 2019 2:17pm
You mean create another company, maybe call it GBR 2.0 ? I think that's a brilliant idea !
Comment by lumpy13 on Dec 12, 2019 3:43pm
My take: 1.  GBR will never develop the mine, the company will be acquired by a major.  A major (Newmont, Barrick, etc) wants to see maximum ounces and will pay a premium for a larger deposit. 2.  If it's logical to develop the project faster, and improve the IRR, by simultaneously mine different areas, wouldn't the acquirer do the same thing?   I may be wrong, but ...more  
Comment by captainpooby on Dec 12, 2019 3:55pm
It won’t be broken up. People on here engage in wishcasting and wild fantasies all the time and that’s just another fantasy. It’s fine (and fun) to speculate but sometimes the theories have no real basis in reality. Pure speculation.
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