Abcourt Mines Inc V.ABI

2% NSR onSG + worst decision ever

[fbedard29]

Hi Tannin
Abcourt has already made 2 PP this year.
It is supposed to merge with Pershimex (if it does that should bring$1.5m on 5000t).
Sleeping Giant is close to production.
Abcourt NEED to hire an accountant to evaluate future deal because this
2% NSR wasn't calculated by an accountant.
Just a few point to analyze.
Is Sleeping Giant close to production.
Will new drilling at SG increase the reserves.
Will the production be 10k oz per year for life or  20k oz . .
Will the price of gold be $1500,$2000 ,$2500 $3000us in 3 years.
2% NSR on 10k oz = 200 oz \ year   Return      20k oz =    400 oz /year   return
at $1500   200 oz   = $300,000          15%         20k oz =    $600,000            30%
 at $2000  200 oz   = $400,000          20%         20k oz =    $800,000            40%
at $2500   200 oz   = $500,000          25%         20k oz = $1,000,000            50%
at $3000   200 oz   = $600,000          30%         20k oz = $1,200,000            60%

Shareholders were complaining that the 2% given to Mr Hinse was the only profit
that Elder could create and was given in NSR.

Now the same will apply to Sleeping Giant.

Any bank will give a credit card at 15-19% to anybody.
It woud have been a better bet to ask for a credit card at 19% that could be repaid at
anytime.

Now we are stuck with a 2% NSR .1% can be bought back for $6m
0.5% can be bought back for $2M in 3 years and another 0.5% in 6 years at $4m.
How many other deal like this one can be expected in the near future.

If my way of thinking is wrong please feel free to debate and correct my errors.

Fernand

[fbedard29]

Hi everybody. After more inquiry and talking to a person that seems to know much more about Mr Hamelin and the activities going on, on Abcourt SG site and future plans i have to excuse myself for posting such a negative post . It seems that the merger with Pershimex is still planned even if the previous news mentionned possible voting in september , but i still haven't received a voting proxi

[tannin]

Fernand, your point is well taken, it's expensive money, all the more so if we're heading into success. Delighted to hear the deal looks better with more understanding of the direction ABI's going. I'd be pretty sure the PRO BoD, were consulted, btw.