Signal Gold Inc T.SGNL

Price for the takeover SGNL

[andre171]

What do you think Nexgold would pay for Signal Gold? For me, it would be 0.1244 SGNL shares * 255.06M shares = 31729464 NEXG shares at the ( current) price of 0.77 CAD on 18/10/2024, or 24.4M CAD. But the transaction cancels Signal's current credit facility of around US$20.4m (=28.1M CAD) with Nebari and NexGold's credit facility of US$6.0m (=8.3M CAD) with Extract Capital. May I therefore consider that the price paid by NexGold would be 24.4 + 28.1 -8.3 = 44.2M CAD. This price may, of course, change depending on NEXG's listing until the takeover closes. This price corresponds +- to SGNL's enterprise value of 41.2M according to Yahoo. What do you think?

[Whitehorse1967]

This post has been removed in accordance with Community Policy

[andre171]

Thank you for your reply. Ok, that would put the price at 29.7M CAD. But according to Yahoo, SGNL's total debt would be 26.2M and not 20.4, so we would end up with 29.7 + 8.8 =35.5M. This represents less than 4% of the NPV for gold at $2500, and this price values SGNL's reserves and resources at +- half those of NEXG. This shows that NEXG shareholders should also be satisfied with this