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I wonder if the deal might be announced in conjunction with the Newmont earnings which are going to be released on Thursday?
http://biz.yahoo.com/cc/4/32944.html
Newmont Mining Corporation Earnings Conference Call (Q2 2003)
Scheduled to start Thu, Jul 31, 2003, 1:00 pm Eastern
Nothing new here but Moydow mentioned;
Casey's van Eeden says head down to Cornerstone and buy
Cornerstone Capital Resources Inc CGP
Shares issued 13,197,037 Jul 24 close $0.46
Mon 28 Jul 2003 In the News
Paul van Eeden, writing in the June 26 issue of Douglas Casey's International Speculator, says Cornerstone Capital is a buy at 45 cents. The company has done a stellar job of finding good projects and then using other people's money to finance their exploration. With $1.35-million in the bank, enough to last three years, the company is well financed. The stock has been trading at the 45-cent level over the past month, implying a market capitalization of only $6-million based on just over 13 million shares. In early June, Moydow Mines announced it had commenced drilling on the True Grit property. By mid-month, Moydow shares jumped on much-stronger-than-normal volume. Because Moydow is not working on any other significant projects, that could mean the company has found something interesting at True Grit. Mr. van Eeden says this could be a signal to start accumulating Cornerstone. "If Moydow did indeed make a discovery, then Cornerstone's share price should do well from here on," he says. "If not, this is a good time to buy Cornerstone anyway." Regardless of what happens at True Grit, there should be a steady stream of exploration news coming out of Cornerstone during the next six months, he says.
(c) Copyright 2003 Canjex Publishing Ltd. http://www.stockwatch.com
It will be interesting to see how the stock reacts when they (Newmont) do announce the deal. A Newmont press release will get a lot more attention than anything MOY has ever done and should bring a lot of fresh eyes to the stock. I think another 25% move from here is quite possible.
So the arbitrage right now is bigger than ever, certainly not unexpected for a company that would just let the "four month closing OR EARLIER", come and go without comment. This MOY management is a peculiar bunch. Can't wait to just get something close (90% of would be fine) to the NEM amount, and give the rest as a freebie to others who will no doubt have to put up with this nonsense.
I would say the enterprise value of the company may be 15-25 cents per share and that would include all of their mineral properties. Botwood probably isn't worth that much alone or if it is the company is keeping it a secret (along with everything else) because they have never released any information on their Botwood claims.
The value of 2% NSR is difficult to pin down. It depends on how many ounces Newmont ends up mining and the price of gold when the mining takes place. Anywhere from 7-12 million Cdn is my guess.
Cheers
Thanks!
Would you also put the value of the 2% net smelter royalty at 5 cents and Botswood Basin at 10 to 25 cents per share?
RT
MOY will take entire distribution in shares and forego the $2M cash, taking 100% shares is their option, see press release.
Value of MOY, based on NEM $35.40:
$20,000,000 NEM consideration......20,000,000
$25.50 share exchange rate......... $25.50
784,314 total NEM shares to MOY..... 784,314***
26,414,014 MOY shares o/s.......... 26,414,014
NEM shares per MOY share........... 0.02969309
$35.40 NEM share price............. $35.40
arbitrage value of MOY share in US$.....$1.0511
US$1.05 = Can$1.45 for NEM shares alone
estimated MOY cash on hand 6/30 = Can$.024
Arbitrage value of NEM distribution and cash = Can$1.47
*** This 784,314 confirmed in MOY press release/quarterly
I thought I'd try to calculate the value of MOY based on the current value of NEM ($35.40 US) assuming the deal goes through. This is the first time I've done this so apologies to everyone if I've made a mistake. I'm happy to have any feedback. I'm using Russ Winter's original calculations as a guide. (**)
Using .72 as the Cdn conversion here's what it looks like on a per share basis:
24.99m in NEM x 1.40 Cdn conversion= 34.99m Cdn/26.4 m shares= $1.32
2m cash X 1.47= 2.94m/26.4= 11 cents
1.192 net cash already on hand in treasury(at 3rd qt)- 300k (est. cash burn 1st and 2nd qt) = 892 x 1.47= 1.312/26.4= 5 cents.
Wts and options are out of the money:
1,100,000 @ C$1.00 2/5/04
792,500 @ C$1.15 9/24/04
1,255,000 @ C$1.70 1/14/05
225,000 @ C$2.25 1/14/05
Total NEM and cash is $1.48
Holdings:
2% NSR on all Au and Ag from Ntotoroso in excess of current reserve of 1.2m oz. I don't know what value to put on that, except it is very likely NEM will drill deep, and find more. One million oz would be worth US$7 million (40 cents). I'll value at 5 cents, with blue sky for more.
Key concession in Botswood Basin. Grassroots, but I can name numerous Canadian plays like it with mkt value of $2-5 million or more, add 10 to 25 cents per share.
Low end value for arbitrage portion of this play= $1.63.
(**) See http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=18758140
http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=18868371
http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=18870102
I've highlighted the figures I have updated. Am I missing something?
RT
Here is a post from Stockhouse. Sounds positive.
I asked if there is an expiry date for the letter of intent and if the deal will be materialized. The reply was no expiry date and they are working on the agreement and details. They considered themself to be well advance and everything must go.
I personally did three acquisition invloving the process of letter of intent, due diligence, final purchase and sell agreeemnt and determination of closing date. There are quite of number of parties involved and mainly the lawyers and key personnel of both sides controlling the progress. It is common that the due diligence got extended if there is any materail finding which may alter the initial agreed value. There is no deadline for this type of transaction in particular that they are partners. I speculate that they will try to achieve the conclusion of the deal by the end of the month.
http://www.stockhouse.ca/bullboards/viewmessage.asp?no=6507313&t=0&all=0&TableID=0
I am hoping for the straight ahead deal, with NEM shares being transferred into my account in lieu of cash... I believe this would be tax efficient... And we have that old gent 30%+ shareholder needing to get out so I would think (and hope) over 51% of the distribution will be in NEM shares (guessing 66% per prior conversation, and anticipate Can$.80 minimum to get the last PP holders out whole).
However, I speculate MOY could indeed buy a Nevada mine with proven reserves (via NEM?) and trade that 2% NSR royalty for it... The assumed US$7M net present value of this NSR may buy some decent inferred reserves needing $400+ gold... That would be my best guess, and hope! Getting proven reserves for that 2%NSR may not be such a bad idea, market would likely value this higher than the royalty...?
Nonetheless, it is inexcuseable not to have issued a press release after the 120 day deadline... Something such as:
"A seven day extension to the Letter of Intent was agreed upon today. NEM and MOY are still negotiating the best means to proceed so that both parties can realize maximum shareholder value from the transaction."
would have been nice...
TF, Ohh I dunno, I'm speculating that their "intention to return a major portion of the initial consideration directly to the shareholders in a tax-efficient manner" includes another acquisition for taxation reasons. That's it, that's all.
Anyway... they might just do the straight ahead thing and mail the shareholders a cheque ... but somehow I doubt it. As per my previous message on MC #msg-1241041
Michael,
"Moydow Mines was a result of a reverse take-over of Westley Mines International which afforded them a two-and-a-half million dollar tax pool"
Please explain the significance of this?
They haven't turned their back on Ghana completely because they were still talking about an exploration program at Kanyankaw, Ghana this summer (see the interim financials from March 31st). Who knows if this is actually happening?
http://www.sedar.com/csfsprod/data38/filings/00547392/00000001/w%3A%5C3w_out%5C25493%5C1qtr.pdf
Would sure like some public disclosure on:
Newmont deal
True Grit
Botwood (Is this just so much moose pasture?)
Kanyankaw
The mysterious IR statement
Boy its good to be kept in the dark (g)
amarksp ... here's an experienced management team with a ton of money-- I'm guessing that the phone has been ringing of the wall with deal making ideas for the past three months. They have two objectives -- 1) they have to make a significant deal to remain on the TSX. 2) hold the stock price in the $0.80 to $1.00 range while returning some profits to the shareholder. Odds are they've swung something fairly big-- (something in Nevada perhaps?) which would account for the lateness of the PR.
Anyway, all speculation.
Michael:
Any comments on this?:
Guess it is conceivable that MOY can prove up some reserves at True Grit in the very near future?? If so, and given MOY's $800K commitment, then MOY would still qualify for TSE listing??? That is, greater than C$750K required per:
http://www.tse-cdnx.com/en/pdf/TSXMiningRequirements.pdf
"In February, 2003 the Company signed an agreement with Cornerstone Capital Resources Inc. (“Cornerstone”), whereby the Company has the option to acquire a 51% interest in a group of claims located in south-central Newfoundland owned by Cornerstone. The Company is required to incur exploration expenditures on these claims of not less than Cdn$800,000 on or before February 2007 in order to earn a 51% interest in these properties."
Also, it would seem reasonable for TSE to allow at least 3 months, and maybe until next annual filing?, before the TSE would determine that MOY no longer qualifies for TSE listing? It would seem unreasonable for TSE to disqualify MOY on the first day after the assumed NEM distribution, wouldn't it??
A few months added time may allow MOY to complete a 43-101 independent report on the True Grit reserve??:
7/12/03
"As well, there’s True Grit, an 89-square-kilometre patch of land north of Hermitage Bay. There, Cornerstone has identified two gold targets and is partnered with Dublin-based Moydow Mines International.
The pair have just finished drilling and are awaiting assay results. One bulk tonnage gold target could be extracted via open-pit mining, which keeps the cost down.
“The grade is lower, but it’s a big project,” said McKay. “We don’t need spectacular grades on that project.”
He says True Grit could have more potential than the Botwood Basin, a 4,000-square-kilometre chunk of land in central Newfoundland that has been likened to the gold-rich Carlin basin in Nevada."
http://www.crigold.com/joint07.pdf
Hopefully, TSE would give them some time to complete the 43-101 independent report before yanking their listing?
lol! That is cryptic but encouraging ... if there would have been any kind of liquidity in that stock this morning I would have sold and added to me concentration of silver equities ... illiquidity is certainly a risk with these kinds of plays.
Whatever the news, it better be good ... it has to be if they want to remain on the TSX.
Regards,
Michael.............
Put in a call to investor relations, but missed his return call, but the following message was left...:
"I hope you are a shareholder, you should be, ...and call me back"
Well, I would much rather have a news release, but guess this somewhat cryptic message will suffice for now...
someone else's turn, here is the phone number:
Tel: 416-703-3751
well russ, why not you? you are more elequant than i and are much better versed in the markets - plus im sure that your position is bigger than most of ours. how about it?
jon
Why does the exchange even let these guys trade? Somebody ought to contact them (the exchange).
Newmont hitting new highs. Today would be a great day for news.
Yes, once again us shareholders are left hanging. At least the share price is appreciating but that could go down faster than a house of cards if we don't get news.
Noticed a large block for sale this morning at 1.04 but they (Pollitt) didn't accumulate any of the lower priced shares in the afternoon so it must have been legit.
no news is not good news...
Given prior investor relations history, guess MOY could have finalized the deal today and just forgot to announce it...
Hopefully, this stock will be halted in the morning... Cannot see how MOY can publicly state a firm 120 day deadline, and then let this deadline pass without any news release, either one way or the other..., and said news release should have been issued by 6PM EST today...
Trading in MOY stock should be halted pending a press release disclosing current status of the NEM Letter of Intent. Although I continue to believe that NEM is at fault (and not MOY) for delaying this decision beyond 120 days, it is MOY management's responsibility to issue a news release by tomorrow morning or halt MOY trading pending a news release.
I think it was Bayview who came up with the $7 million figure:
#msg-866840
The way I see it, there are already 1.1 million proven oz on the property. It isn't a stretch to figure that Newmont will eventually bring that up to 2 million.
(2 million oz) x (US$320/oz) x (2%) = US$12.8 million
There may be some tax on this to the Ghana government.
The money from the NSR will come in over the life of the mine. Maybe it will kick in in 2005 and last for 10 years? I wouldn't expect it to enter into the stock price but it will provide income to finance exploration in the future.
a few more tidbits:
1.1M option shares exerciseable at Can$1.00 with expiration date of Feb 5, 2004. Will be interesting to see if and how and whether these option shares are exercised... If not exercised pre-distribution, wonder how these options will be adjusted post-distribution...
________________________
awaiting assay results at True Grit...
7/12/03
As well, there’s True Grit, an 89-square-kilometre patch of land north of Hermitage Bay. There, Cornerstone has identified two gold targets and is partnered with Dublin-based Moydow Mines International.
The pair have just finished drilling and are awaiting assay results. One bulk tonnage gold target could be extracted via open-pit mining, which keeps the cost down.
“The grade is lower, but it’s a big project,” said McKay. “We don’t need spectacular grades on that project.”
http://www.crigold.com/joint07.pdf
_________________________
Guess it is conceivable that MOY can prove up some reserves at True Grit in the very near future?? If so, and given MOY's $800K commitment, then MOY would still qualify for TSE listing??? That is, greater than C$750K required per:
http://www.tse-cdnx.com/en/pdf/TSXMiningRequirements.pdf
"In February, 2003 the Company signed an agreement with Cornerstone Capital Resources Inc. (“Cornerstone”), whereby the Company has the option to acquire a 51% interest in a group of claims located in south-central Newfoundland owned by Cornerstone. The Company is required to incur exploration expenditures on these claims of not less than Cdn$800,000 on or before February 2007 in order to earn a 51% interest in these properties."
One last look at MOY:
Assuming NEM @ 32.97:
1) Total distribution to MOY = US$.979
This equals Can$1.375 and what MOY should be trading for at a minimum, pre-distribution...
2) Would assume MOY would distribute 66% minimum to shareholders or about Can$.90
3) Thus, MOY would retain Can$.475 cash per share (C$1.375-C$.90).
4) Assuming MOY has cash expenses this quarter of C$250K, that would leave $638K cash on MOY balance sheet as of 6/30/03 or about Can$.025 per share.
5) Accordingly, MOY cash value alone would equal Can$.50 per share post distribution. No value assigned to NEM royalty stream or to MOY's other properties. Thus, would appear that MOY stock price should be supported at C$.50 per share post distribution (i.e. cash in bank per share only).
6) MOY's remaining mine assets total C$1.7M book value or C$.06 per share per 12/31 balance sheet, not much...
7) The NEM royalty would be a more significant asset per my recollection, anyone have the likely cash flow figures for this NEM royalty...? Seems like I recollect someone mentioning Can$7 million total?, or about Can$.26 per share. Please advise...
That wasn't me:
http://www.investorshub.com/boards/read_msg.asp?message_id=1109279
Well, the news release said 120 days. Tomorrow is the 120th day following the release. We shall see...
http://www.moydow.com/20030324pr.html
tradingfool:
Thanks for the link, that is encouraging...
In regard to your prior post regarding future TSE listing for MOY, have you analyzed this further? That is, will MOY still meet the TSE listing requirements after its proven reserves are sold? Will the royalty cash flow stream make a difference in lieu of the proven reserves? Believe you brought this issue up and it will be interesting to see how this is resolved...
Thanks for any comments...
Way too early for "Congratulations"...
MOY will likely be trading under Can$.80 if we do not get news within the next 36 hours...
Congratulations to those of you who hung in with this one.
You just hit $1.00. Projections were for $1.20... Good Luck and full speed ahead.
Memo to MOY management:
You cannot hold an "Extraordinary General Meeting...at the end of July" if the deal is not closed by then. Just thought I'd let you know...
_________________________________
May 28, Letter to Shareholders
Message to our shareholders
On March 24, 2003, your Company signed a letter of intent with Newmont Mining Corporation to sell its 50% interest in the Ntotoroso deposit for US$20 million, of which Moydow will have the option of receiving up to US$2 million in cash and the balance in Newmont shares. The price of these Newmont shares was fixed at a maximum of US$25.50 each, meaning that if the share price stays above that price Moydow will receive 784,314 shares of Newmont Mining.
The transaction is expected to be completed in the next two months and a combined Annual and Extraordinary General Meeting will be held at the end of July, at which time the shareholders will vote on the proposed transaction.
In the meantime, your Company continues its exploration efforts in Ghana and Canada. A new round of exploration at the Kanyankaw project in Ghana is expected to commence in the summer. At the recently optioned True Grit property in Newfoundland our geologists are on the ground and it is expected that drilling will commence in the next two weeks.
Subsequent to the sale of our 50% interest in Ntotoroso, your Company will be uniquely positioned to take advantage of the recent upswing in the gold price and the improved sentiment in the exploration market. As previously stated, it is the intention to return a major portion of the initial consideration directly to the shareholders in a tax-efficient manner, while still retaining enough to ensure that your Company can continue to explore aggressively worldwide.
Prior to the combined Annual and Extraordinary General Meeting to be held in Toronto at the end of July, 2003, a circular detailing the proposed transaction and the eventual path forward for your Company will be distributed to all shareholders. Thank you for your ongoing support during this time of transition and we look forward together to a successful
future.
“Signed”
Brian Kiernan
President and Chief Executive Officer May 28, 2003
http://www.moydow.com/1stQuarter2003.pdf
Who knows... Given NEM track record, if they can delay it, they will. Nonetheless, that 120 day deadline was very firm the way I read the MOY press release, did not leave any wiggle room. Sure wish it would have been a joint NEM/MOY press release and not MOY alone...
As posted, I am not surprised that this is going the full 120 days. FWIW, I will be surprised if this deal is not consummated within the 120 days deadline, namely by end of day July 22. We'll see...
As I ponder some more, FWIW, MOY would not have stated a 120 day deadline unless this 120 days was in writing... Guess there is a possibility NEM could hardball MOY again and force them to extend the 120 days..., but this may allow MOY to nix the deal altogether? and I believe NEM does want these ounces badly. Still betting these deal closes on July 22nd...
Are they going to announce the deal at the last minute or extend the 120 day deadline? There's only a couple of days left.
A flood of news in the next couple of days would be nice.
Moydow mentioned in this article:
Joint ventures ease sting of hunt 7/12/03
By Moira Baird - The Telegram
Newfoundland's mineral exploration game is one business where
competitors seem happy to see each other succeed.
Glen McKay, president of Mount Pearl-based exploration junior
Cornerstone Capital Resources, says it's a first for him.
"This is the only business I've been involved in where you want to
see your competitors succeed," he said.
Like every other junior, Cornerstone is looking for that big
discovery -- preferably gold or copper -- somewhere in the
province. The company has 20 projects in various stages of exploration.
"We're looking for success," said McKay. "There's an old saying -- you've got to kiss a lot of frogs
before you find a prince."
The odds of finding an economic discovery are about 10,000 to one, or greater.
"That's really the most risky part of it -- the grassroots exploration," said McKay.
"We have to look more and more to major companies who are looking for properties of merit …
and are prepared to finance the additional work on your projects."
Complementary roles
In mining circles, it's called joint-venture partnerships. The juniors hire geologists and beat the
bushes and bogs in the search for minerals, while the majors provide the cash.
In late 1999, Cornerstone started working to attract those partners -- developing a technical team
to evaluate projects and focusing on marketing those projects to the bigger companies.
"In the last two years, we've been able to put together that team."
The company has partnership deals for eight of its 20 properties, and McKay expects to have two
more partners by September. Cornerstone's goal is to have 12 joint ventures by the end of the
year.
Cornerstone tries to match properties and mining companies.
"Our job is to do the preliminary evaluation," he said.
"If we think it's something that has merit, to put it together in a presentation that would attract a
company that would be interested in that type of target."
McKay describes himself as the company's business component.
In 1985, he founded Newfoundland Hard-Rok Inc., a Newfoundland company that manufactures
explosives used in road building, quarries and mining.
By 1997, he ended up in the mineral exploration game by grub-staking Cornerstone co-founder
and prospector Ken Stead in his hunt for copper.
Wayne Pickett (left) and Tim
Froude of Cornerstone Resources
look over some of the company's
properties at their Mount Pearl
offices recently.
In 1999, Stead discovered a mineral deposit type that was previously unrecognized -- a
sediment-hosted copper belt traversing the Bonavista Peninsula.
"What's so intriguing about it is where these deposits are found in other parts of the world, these
are normally very large deposits -- commonly referred to as world-class" said McKay.
Discovered on Cornerstone's Red Cliff property, he says it resembles Africa's Zambian copper
belt which spawned more than 30 mines in the past half-century.
"We broke new ground. We've proven that style of mineralization … we've proven there's a
deposit there," he said.
The next step is prove there's a deposit large enough to mine, and that means finding a new joint
venture partner for the project.
Although a previous partner lost interest in Red Cliff, McKay says a recent, independent review of
the property restored Cornerstone's faith in it.
"This guy is so excited by what he's seen. I think that Red Cliff will prove to be very significant for
Cornerstone."
Among Cornerstone's other properties is the Colchester gold property, near King's Point on the
western side of Notre Dame Bay.
Further up the Baie Verte Peninsula is Richmont's Hammerdown gold mine.
But McKay says no one had assayed for gold at Colchester before the company staked its
claims.
"The gold showings are good," he said. "That's one that we have advanced in just one year."
Geological similarities
He says it's geologically similar to one of Canada's biggest gold mines in Quebec operated by
Agnico-Eagle Mining, the parent company of joint venture partner Sudbury Contact Mines.
"Already, they're talking about how to spend the third year's funds. They're very positive on that
project."
As well, there's True Grit, an 89-square-kilometre patch of land north of Hermitage Bay. There,
Cornerstone has identified two gold targets and is partnered with Dublin-based Moydow Mines
International.
The pair have just finished drilling and are awaiting assay results. One bulk tonnage gold target
could be extracted via open-pit mining, which keeps the cost down.
"The grade is lower, but it's a big project," said McKay. "We don't need spectacular grades on that
project."
He says True Grit could have more potential than the Botwood Basin, a 4,000-square-kilometre
chunk of land in central Newfoundland that has been likened to the gold-rich Carlin basin in
Nevada.
Newmont closes on Aquiline Resources today...
Per Aquiline Jan 29 news release:
"The transaction is expected to close in early April, 2003."
Thus, today being July 11, about 90 days later than Aquiline expected per their press release...
TORONTO, July 11 /CNW/ - Aquiline Resources Inc. is pleased to announce that it has completed the transaction announced January 29th, 2003 with Newmont Mining Corporation (NYSE: NEM - News) and Newmont LaSource Developpement, an affiliate of Newmont Mining Corporation (collectively "Newmont"), to acquire Newmont's Calcatreu gold project in Argentina.
________________________
There does not appear to be any wiggle room for this NEM/MOY transaction closing after 120 days, the way I read it:
"It is anticipated that the sale of Ntotoroso will be completed as soon as possible and in any event within 120 days, subject to TSX approval, appropriate due diligence and other regulatory and corporate approvals."
However, note this is a MOY press release only, NEM never issued a press release regarding the MOY deal.
________________________
NEM mentions/lists Moydow in their 6/1 European UBS Warburg presentation, see slide 24:
http://media.corporate-ir.net/media_files/NYS/NEM/presentations/European_RoadshowJune_2003/sld024.ht...
________________________
Bottom line, I still believe NEM closes this MOY deal by July 22, the 120 day deadline...
FWIW, a close by July 23, 2003 will mark one full year of delay by NEM since the Rank Production Agreement expired/came up for re-ratification:
"TORONTO, Jul 23, 2002 (BUSINESS WIRE) -- Brian Kiernan, President and Chief Executive Officer of Moydow Mines International Inc. (CA:MOY) announced today that, after discussion with Newmont Mining Corporation, it has been agreed to extend for two months the terms of the Rank Production and Development Agreement., which was originally signed in July, 2000. Rank Mining Company Limited holds a 30-year mining lease on the Ntotoroso property in the Yamfo-Sefwi gold belt in Ghana. Moydow and Newmont both have a 50% interest in Rank Mining.
The Rank agreement is a supplement to the original Joint Venture and governs the way in which the Ntotoroso property will be brought into production in conjunction with the Newmont owned Yamfo-Sefwi property. The agreement has a two year term expiring on July 24, 2002."
And in July too. Another 101 claims staked in the the area and registered on July 9th.
One would think they would have drill results by now...
http://www.gov.nf.ca/mines&en/mqrights/claims/200307.stm
Moydow was actively staking more ground in Southern Newfoundland in June. A total of 343 claims were staked.
http://www.gov.nf.ca/mines&en/mqrights/claims/200306.stm
14 More Days...
Today+1............... 8-Jul-03
120 Day Deadline...... 22-Jul-03
Days to Go............ 14
__________________________
MOY worth US$.648 on assumed NEM distribution alone:
$20,000,000 NEM consideration 20,000,000
$25.50 share exchange rate $25.50
784,314 total NEM shares to MOY 784,314
66.66% assumed % distribution to MOY shareholders 66.6%
549,020 share distribution to MOY shareholders 522,353
26,414,014 MOY shares o/s 26,414,014
0.020785164 NEM shares per MOY share 0.01977560
$32.79 NEM share price $32.79
Arbitrage value of MOY share in US$ $0.6484
Moydow staking more ground in Newfoundland maybe?
http://www.stockhouse.ca/bullboards/viewmessage.asp?no=6453339&t=0&all=0&TableID=0
"i still have fears that NEM might decide not to complete the deal"
Care to elaborate? Why would NEM decide to fund the joint venture drilling with their own cash and then decide not to go through with the buy out? All facts lead one to believe that NEM got a very good deal on this buyout... $20M in NEM stock for 1.2M ounces of gold ($16.66 per ounce)... and NEM needs to add to their reserves... There would have to be a very big skeleton in the closet for this deal not to be approved by NEM.
ive hung on to all of mine - tho the suspense is killing me. i still have fears that NEM might decide not to complete the deal - ive been having a string of bad deals lately and wonder when i will get another winner. i guess i cant post on the stricly bragging thread, can i? <g> i feel like a batter that is going 0 for something and needs to get his confidence back. cmon guys i need those NEM shares in my portfolio! any guesses where this one will trade post distribution? i guess i all depends on what happens in newfoundland.
jon
The board has gone awfully quiet leading up to the finalization of the Newmont deal. It will be interesting to see how the stock trades with the 120 day deadline approaching. Roughly two weeks left to go I think. CIBC continues to buy most of the stock and has been keeping us trading at this 90 cent level for the past few weeks. I sold a small portion of my holdings this past week to take advantage of another opportunity. Still holding about 90% of my position that I built up since January.
Would this quiet period prevent them from releasing news not related to the sale of Ntotoroso?
Less than 4 weeks to go in that deadline. The waiting is almost over.
There aren't that many people left that are willing to sell at this level.
Thanks to CIBC we are still holding at .90 despite the drop in NEM and gold.
Moydow mentioned here. Drilling at True Grit completed.
Many of our shareholders are inquiring about the recent flurry of trading activity. No material change has occurred with Cornerstone, but there are four recent noteworthy items of interest;
1. A first phase drilling program was completed recently on Cornerstone's True Grit project by JV partner, Moydow Mines. Results from assay testing have not yet been received but there may be some speculation going on in the market in association with this.
2. Last week a company that holds a land position in the Cape Ray area announced good results from recent drilling. Cornerstone holds the ground completely surrounding them. Again there may be some speculation going on in the market in association with this.
3. A well known and well respected letter writer in the USA, Paul van Eeden www.pve.net/, who along with Doug Casey are the editors of the International Speculator, last week issued a very positive recommendation on Cornerstone. It was this that recommendation that seems to have sparked some trading activity.
The International Speculator has a base of subscribers who pay $1,500.00 US per year to subscribe to the news letter. Cornerstone has permission to send you a copy of their Cornerstone recommendation to our shareholders on June 30, which provides time for their 'paid' subscriber base to see and act on the recommendation before it is generally available to the public.
4. On June 19 Cornerstone announced the appointment of Jonathan Challis, President, Shore Gold Inc. www.shoregold.com/ii.html and Gary German, President, Falcon Strategy & Management Company, Kingsdale Capital Corporation www.kingsdalecapital.com/falcon-MIDDLE.html to Cornerstone's newly formed Advisory Board.
Best regards.
Investor Relations
Cornerstone Resources Inc.
TSXV - "CGP"
info@crigold.com
www.cornerstoneresources.com
Local 745-8377
1-877-277-8377
Seems too early for True Grit, but maybe Roulston is coming
out on CGP in next issue.
Oh. Its the same guy. Thats funny.
CGP has also been up sharply in the last three days. I wonder if it is just because of the newsletter recommendation or if there is any truth to these True Git rumours.
Paul van Eeden wrote this??
He needs to get a clue..., refer to this post:
"Paul van Eeden, writing in the April 4 issue of Douglas Casey's International Speculator, says Moydow Mines International is a sell at 77 cents"
http://www.investorshub.com/boards/read_msg.asp?message_id=951219
and I sent van Eeden an e-mail as described here:
http://www.investorshub.com/boards/read_msg.asp?message_id=969824
Now van Eeden is wondering why MOY is rising in price...?? Seems to me he should learn how to divide $20M by shares outstanding to determine a reasonable selling price/fair value...
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