Signal Gold Inc T.SGNL

How to Proceed with revitalized Point Rousse

[nozzpack]

There are several ways of doing this at the corporate level .
By this, I mean a merger of Point Rousse with MAE.

Dont know what the ratio would be but 55/45 in favor of Point Rousse imo.

Then set up a SPV ( Special Purpose Vehicle ) to contain those combined assets.
Between MAE and Point Rousse, a management team is added to the SPV and very modest seed capital .

I would have no more than 100 m shares coming out of that SPV and preferably 75 m or less.

As presumed, we would get 55% and MAE shareholders 45%.

Once a few admin matters are settled and red tape completed, the SPV would be spun out directly to shareholders under the MAE listing as NewCo with a new name .

Part of that process would include an initial equity  financing which might include a rights issue to NewCo shareholders.

Fair value should easily be in excess of $50 million, as hard assets would be valued above $30 million plus about $600 million in economic grade gold resources with essentially all mining / processing facilities  fully at hand .

The needed closely spaced drilling program could easily be funded by $5 million after which push backs of just 2 m overburden would enable the 5m mining benches to be configured.

We are then ready to rumble .
One can easily foresee NewCo rising to and above $150 million in Market cap, given the extensive high quality exploration upside which would include much of the Baie Verte Peninsula .

What's there not to like..

[DoumDiDoum]

It sounds so simple. You forget one IMPORTANT thing in your scenario: MAE shareholders. I suggest you post your ideas on the MAE bullboard and see how they will react to it. Good luck!

[nozzpack]

Once again, shoot the messenger not the message. MAE shareholders don't have a viable economic project right now in the absence of $75 million funding . Why wouldn't they want a viable chance to make money on their investment ....as they keep reaching up to touch bottom.

[DoumDiDoum]

Hey, I'm not shooting you at all.  I'm just saying that you assume that MAE shareholders will accept your scenario without resistence.  As I said, I was quite active in trying to convince them for the last 3 years that the best thing was a merge with SGNL. There was some that agreed but there was a lot of resistence too. So I think, if you want to give some support to your spin