Laurion Mineral Exploration Inc. V.LME

Acquisition of Argonaut Gold this morning!

[DouglasGVass]

https://www.globenewswire.com/news-release/2024/03/27/2853063/0/en/Alamos-Gold-Announces-Friendly-Acquisition-of-Argonaut-Gold.html

[BidingTime]

Ice thawing on the M&A front is a good thing for others in the small cap mining space. It's difficult to tell from the PR, but what $$ are Argonaut's GEOs being valued at in this deal?

[DouglasGVass]

Alamos has acquired Argonaut Gold specifically for the Magino mine which is right next door to the Ishkoday. Alamos will be selling off all other assets except that which are Canadian!  Their current market cap is 7.7B. We also have Equinox Gold next door at a 2.4B market cap. This is when having significant cash in the treasury is so significant. Argonaut Gold ran out of money and sold for a

[Wmaver]

Yeah it is unfortunate for sure!  i first saved Argonaut as a stock to buy when LME released a photo of them next door to Ishkoday..... When i started watching they were at 2$.... now after buyout announced only 40c....

[BidingTime]

Ouch

[Smitty64]

LOL that’s pathetic. We need some people with much more knowledge than myself to draw some comparisons here ($DAM and Ahsineeg). How do we shape up to the Magino mine?

[DAM$]

They have 2.3 million ozs at 1.16 g/t proven and probable but my first thought was also Fire sale.  They needed a bailout just to make it to the deal closing. In connection with the Transaction, Alamos has agreed to provide Argonaut with a private placement equity financing in the amount of C$50 million priced at an 8% discount to Argonaut’s 5-day volume-weighted average share price as

[Golden7777]

Thank you

[DAM$]

$0.34 per share after deducting the $0.06 per share for the Spinco 0.34*1.08B shares / 2.36M ozs Proven and probable  = $155.60/oz

[GoldBelt]

I was invested in Argonaut gold for the run up in 2016 from a dollar till I cashed out  almost 3x because it was forecast that the Magino mine capex was much higher than anticipated and AR was going to run out of money.  Alamos got AR for a sweet deal on their part...usually you don't see an acquirer share price increase 5% on news of a deal...the market likes it.   

[Timeandmoney]

Doug, My first time writing to you, but a long time LME long and past contributor to the LME forum. You wrote this am: We are in a very strong financial position and have proven gold reserves that are substantial.  The cash part I get, but can you expana on what you mean by "proven reserves".   Thanks in advance Time and Money  

[DouglasGVass]

Look at the recent 43-101 Technical Report and the one done on the stockpile in the past.  https://www.laurion.ca/_resources/reports/technical_report.pdf

[Timeandmoney]

Doug, Thank you for the reply. My inquiry was about what your view of proven resources actually are.  As you see them.  Sending me to a 100+ page report is a good way to support your conclusion, but you failed to give me your view and simply passed a pile of evidence as to what you think the proven resource quantum actually is. In brief, you left me to try to figure it out. So

[TraderRC]

Good Evening All, To follow up on Time and Money's post, the term used in Doung's original post was "proven resources", so if it is  proven resources, why keep it a secret.  Why just direct the inquiry to the 100 page report?  As the voice of LME, Doug should be answering the questions, unless it is of a confidential natute, in that case total understandable

[TraderRC]

Correction  to my post, should have been "proven gold reserves"  not proven resources. TraderRC

[DouglasGVass]

I am not allowed to interpret the data for you nor am I qualified to do so. I appreciate DAMS very detailed post but I am not at liberty to offer this kind of info. In my opinion the current price per share is very cheap based on my own observations. Have a great night!

[ProbGetBanned]

Pathetic buyout ( right next door as you say ). I love everyone harping on GoGoWings for saying LME is worth a $2 buyout and my $1.50 - $2.50 estimate. Do the math. Even with all ducks in a row, LME is only worth what GoGo is saying.  most of you want a 100 bagger or 1000 bagger.  It's not gunna happen. Take your 5x and be happy  cheers. 

[Smitty64]

Can you please help/confirm/correct this math:  Argonaut Gold= $155.60/oz 2.36M ozs proven and profitable Sell for $0.34/share   LME= Ideal $300/oz (given current spot gold price and not having to sell for a 50% firesale discount) = 2x Argonaut 10M ozs proven (hopefully) = 4.23x Argonaut 0.34 x 2 x 4.23 = $2.87/share Maybe you and GoGo are on to something....

[Lambosntendies]

What on earth?... if you're going simply off of share price you are assuming argonaught and Lme have the same amount of shares outstanding/fully diluted... this creates a massive problem.  if you were to try and calculate things in this manner you should go off of market cap. But I wouldn't recommend that either, it's an extremely backwards and convoluted way of doing things

[keen2know]

You're a long way off here.  (Proven resources x $150 (fire sale example)) / number of shares = buyout price per share  10m (we hope) x $150 (fire sale discount of 50%) = $1.5bn  divide by 267m shares outstanding  = $5.61 a share  To highlight that this is based on the fire sale 50% anticipated discount that has just been shown.  therefore I think

[Twiggie]

I just want this sucker to sell and move on with life. From the hopium days of $30 to the present of $2...its time to move forward. Now go read the document Doug posted..its only 101 pages. Then go to sleep and maybe when we wake up the trading will be halted and the Easter bunny will have brought us a sale. 

[Primpage]

At this point everyone seems so frustrated with this stock that it doesn't matter if it's $2 or $30, we all want this nightmare to be over. lol  Laurion Long!