New Found Gold Corp V.NFG

Marathon

[Dixiedee]

Marathon was assumed to have 195,000 ounces x 12 years for 2,340,000 ounces of gold they got 345,000,000 or 147.00 per ounce that was the deal

[shiftyone]

You say they had 2.34 million ounces of gold.  That is for the open pit, which has already had it's area expanded.   Well they got 250 million shares of caliber.  Caliber was just about $1 a share then, maybe a couple pennies more.  But.... Caliber got to buy $40 million worth of Marathon shares at 0.60 before the deal was consumated.  Or 15% of MOZ.  So

[Dixiedee]

147 / ounce was c$ 345 million or 250 million us for 2,340,000 ounces 147 C$ per share or approx 106 us$ per ounce at the time 

[Dixiedee]

Should read ounce not share 

[shiftyone]

I'll look later just for curiousity. Nfg does not have permits. They are not nearing the completion of a mine that when I look, I think MOZ will have had about $400 million into already.  And years ahead in terms of nearing production.  You are valuing that at zero.  Surely that is worth something.  GL

[nozzpack]

What would you need permits for in the case of direct shipping of ore ? Blasting maybe ? Ronnie has been working on productionrequiement /  issues for over two years . In any event, he has stated so at the August fest..

[shiftyone]

I'm not talking about permits to direct ship some ore to Martime for processing.... but it is possible they may need some permits for a whole bunch of 45 ton trucks to traverse the roads everyday.  Because that would cause damage to the roads. I was talking the permits and approvals that would be required for any buyer to come in, decide to move forward with construction, and actually

[Dixiedee]

It does have a lot more gold and a lot better access to infrastructure than marathon did  marathon ran out of money during development which put it at a disadvantage that is one trap when a jr tries to become a producer it's exicusion if not flawless could make them very vulnarable to a lower value 

[shiftyone]

Yes Dixie, but at the time of the buyout.... Marathon had the infrastructure, the power, the roads, pretty much all looked after.

[Dixiedee]

They where deeply in debt and unable to complete on own plus less than 3 million ounces  they where unsuccessful in trying to transfer from a jr exploration company to a producor and had to sell out at a later stage in the process 

[shiftyone]

They were not in great financial situation at the time of the buyout because of cost overruns.  But I suggest they could have continued on with significant dilution, or more loans.  The shareprice of junior companies building mines was at a crazy low when they were taken out by cbx.  So to do equity financing at the price they would have to was hard to swallow.  Moz instead