Oromin Explorations Ltd OLEPF

Randgold's Massawa deposit is only.....

[tony1969]

about 25 kilometers or about 15 miles from TGZ's mill and even closer to the OJVG.  TGZ's Gora deposit is also about 25 kilometers from their mill and they will truck the ore to the mill to be processed.  In other words Randgold can combine Massawa, Oromin and Sabodala (TGZ) and form a huge property that will have over 10 million ounces measured and indicated and an updraded mill capable of producing at least 350k ounces per year.  Randgold has over 3 million m&i ounces of over 3 g/t gold at Massawa that has been certified since 2011.  For now they have decided not  to build a mill but they are still drilling the property during 2013.  They can save about $500 million by not building a mill and use those funds to buy both TGZ and OLE for maybe $800 million and process all the ounces from the 3 properties through TGZ's mill. Loulo is Randgold's massive 11 million ounce plus mine but it is about 75 kilometers from Massawa and it is in Mali so it is too far to use as a mill and is in a different country with different mining laws which I would assume probably prevents them from processing Mali gold through a Senegal mill. Randgold has the opportunity to take advantage of this horrible junior environment and create a massive presence in Senegal at a bargain price with a mill to boot. Comments?

[SPACEDOC]

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[tony1969]

I totally agree space.  PG has basically been in constant contact with OLE and has been told to inform us that we will be lucky to get $1.00.  Blue continues his pipe dream $1.50 to $2.00 target.  Blue, Chet would have taken $1.50 a year ago in a much better environment and he never got the offer. In this environment OLE will not get a bid over $300 million and you are still

[bluestar]

how do you know chet would have taken $1.5?. i don't think he would have given it a thought.  this market will change as it always does and gold will be back in favour and chet will get his price. we just have to wait now. after all these years and a $4.00+ sp a few years back i can't believe that some of you think chet would give this away. not gonna happen.

[topoftheridge]

three things can happen here IMO (but we all know I am not that smart) 1.  a one OLE for one TGZ merger very soon (leaves lots of room for appreciation) ~gives a current value of ~$1 2. an offer of $1.50 to $2 in cash or liquid stock such as Randgold, why accept less after all the years and expenses? i don't think Bendon is in this to lose money. 3. a huge loan/financing/ or joint

[tony1969]

All of that is in the past and it is not one bit relevant now.  Things change blue gold companies share prices have been cut in half if not by 75%.  The deal that they had with TGZ over a year ago was rumored to be for roughly $1.50 per share and it is also rumored that it did not fly because Bendon wanted cash because the elections spooked them.  Question blue. So how

[tony1969]

So what is in it for TGZ top?  No one will buy OLE and sit on those ounces.  They have been dormant long enough.  They need to go into production asap. If OLE gets something in that range (which I believe to be too high in this environment), what do you think TGZ would get for their part of the deal considering that you cannot mine OLE without TGZ.  Don't get me wrong I

[topoftheridge]

on the whole I agree with you Tony, but on the other hand,  why give it away? TGZ is vulnerable to a hostile takeunder,  the same is not true of OLE...due to the ownership structure. I do not know much about Bendon but they must have (more) cash? or funds?  So if you cannot get your price you go to production and sell the gold. I agree your scenario of 75 cents is more likely

[tony1969]

Hey Top I agree that TGZ is ripe for a takeunder and the party that wants them will for obvious reasons also want OLE.  OLE and Bendon have each put up about $75 million of the $150 milllion so far invested in the OJVG.  Each side will make money but not as much as they originally thought.  As far as going into production, that is always a possibilty but the probability of OLE

[tony1969]

Hey Top when you say that TGZ is vulnerable to a hostile takeunder I hope you did not mean that they would get a bid for a price less than $1.11.  Their book value is $1.50.  A takeunder literally means when a company is bought for less than what it is trading at. They have a market cap of about $270 million and their mill and its expansion cost almost twice that.  Just to get