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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...
We should get news release pretty soon detailing the exploration program...
From May 1 press release:
"An exploration plan is being designed to systematically test the entire land package over a number of years. While the various exploration targets that are already defined will be prioritized in coming months, the natural starting point for exploration work this year is in the Mulatos Deposit area. Potential exists to define additional resources both within and external to the existing reserve base. This can potentially benefit the feasibility program underway. The exploration work that will be undertaken this year will be detailed in a future news release."
Since there are only 5 months remaining this year, this news release should be out soon..., maybe announced with 2Q03 financials?
Also, we will get news on hopefully an improved recovery rate:
"Alamos Gold intends to complete a small test heap-leach program in late 2003." At this time, the company is proposing to develop three, 2,000-tonne pads containing oxide, sulphide and mixed ore. The program is to evaluate several aspects in an attempt to improve recoveries, including finer crushing of the ore and agglomeration."
And of course, we still have that hopefully favorable Ejido Mulatos court decision resolved this month...
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?
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
Jackc:
Per my understanding of these GBN comments, it seems to me that future drilling will in fact be much deeper:
"The best exploration potential for the more traditional Carlin-style deposits in the lower plate rocks occur at depths ranging from 5,000 to 6,000 feet (1,524 to 1,829 metres) in the silty carbonate host rocks of the Rodeo Creek, Popovich and Roberts Mountain Formations...The Little Boulder Basin discovery may provide the best analogy to the deep exploration planned for the Hatter area and the Ivanhoe Property as a whole, as it demonstrates that high-grade gold mineralization exists over a considerable range of vertical depth throughout the Carlin Trend...
However, the presence of mineralization in stratigraphy indicates that many of the criteria contributing to the formation of a "Carlin-type" deposit could be present beneath the Hollister-Hatter area...A re-interpretation of exploration information for the eastern half of the property resulted in the recognition of a second major structural trend on the Ivanhoe property. The north-northwest trend of the newly identified major fault structures is the same as the principal ore-bearing structure at Ken Snyder and other mines in northeastern Nevada. This new structural trend provides potential to find significant, additional high-grade gold vein systems."
Looks like the Hatter area for sure will be drilled deep and maybe E Clementine as well... Given your $400K per whack figure, let's hope it doesn't take too many whacks...
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.
Ivanhoe Technical Summary per 20-F
Ivanhoe Property - Technical Summary
Readers are cautioned that certain historical information provided herein about the Ivanhoe Property, and the Carlin Trend on which it is located, uses terminology which is dated and so may not be comparable to the current discussion which employs mandated terminology.
The Ivanhoe Property is located northwest of Newmont and Barrick Gold's existing gold mines on Nevada's 50-mile (80-kilometre) long Carlin Trend gold belt (Figure 1). Current annual gold production from the Carlin Trend is nearly four million ounces; the district has produced over 30 million ounces since 1965. Carlin Trend reserves and mineralized material (resources) are currently estimated to contain over 77 million ounces of gold.
The geological setting of the gold mineralization at Ivanhoe has many characteristics in common with other Carlin Trend deposits. Exploration efforts by previous operators at Ivanhoe had focused on outlining near-surface gold mineralization with open pit potential. There was past open pit production of 115,696 ounces (3.6 million grams) of gold from the "Hollister" area of the Property. Great Basin's exploration program has and will continue to test the potential for moderate to deep, high-grade gold deposits on the property.
Great Basin has identified two primary target-areas, Hollister and Hatter, for feeder veins at moderate depth and deeper, lower plate hosted gold systems. Exploration by Great Basin has defined the orientation of gold feeder veins in the Hollister area, and prospective host rock stratigraphy in lower plate rocks in the Hollister and Hatter areas. On a more regional scale, a compilation and re-interpretation of property-wide exploration information in 2001 resulted in the important discovery of a second major structural trend on the property. The north-northwest trend of the newly identified fault structures is the same as the principal ore structures at the Ken Snyder and other mines in northeastern Nevada that are related to the Miocene-aged Northern Nevada Rift. This new structural trend provides excellent potential to find significant, additional high-grade gold vein systems.
An initial estimation of the mineral resource for the Clementine and Gwenivere high-grade veins in the Hollister area was completed in 2001. Based on this mineralization (inferred resource), a preliminary economic assessment of capital and operating costs was done indicating robust rates of return for a 600 ton per day underground operation utilizing toll milling.
In August 2002, Great Basin entered into an agreement with Hecla Mining Company, whereby Hecla can earn a 50% interest an area called the Hollister Development Block, which is within and is approximately 5% of the total area of the Ivanhoe Property, by funding a two-stage advanced exploration and development program leading to commercial development of the Clementine-Gwenivere high grade vein systems.
Would appreciate your comments on:
http://www.investorshub.com/boards/read_msg.asp?message_id=1232844
However, if you are going to make snide remarks similar to "It's simple. Biggie veins. Biggie Gold. Biggie money", then please do not post on the Great Basin message board, rather please reply in this iHub Mining thread.
Look forward to your comments... (I think)
Recent Exploration per 20-F:
Recent Exploration
The goal of Great Basin's exploration program at Ivanhoe is to locate high-grade gold deposits that are mineable by underground methods. In general, exploration will be based on comparisons to the Ken Snyder Mine at Midas, located further to the northwest on the Carlin Trend, and the Goldstrike area (i.e. Post-Betze and associated deposits). The comparison with Ken Snyder is based on the similarity in style and mineralogy of the feeder veins that have been intersected beneath the Hollister deposit to those at the Midas discovery. The comparison with Goldstrike is based on the similarity of the size and tenor of the gold leakage anomalies in both the Hollister and Hatter areas; the ore controlling structures; the Lower Palaeozoic stratigraphy; and the association of mineralization with an intermediate composition intrusive body (i.e. the Hatter Stock).
The best exploration potential for the more traditional Carlin-style deposits in the lower plate rocks occur at depths ranging from 5,000 to 6,000 feet (1,524 to 1,829 metres) in the silty carbonate host rocks of the Rodeo Creek, Popovich and Roberts Mountain Formations. Deep drilling by Newmont in 1996 on the northern margin of the Little Boulder Basin stock east of Goldstrike discovered high-grade gold zones at over 6,000 feet (1,828 metres) below the surface. Two intercepts from this zone averaged 206 feet of 0.146 oz. Au/ton (62.8 metres of 5.0 g/tonne) including 22.5 feet of 0.570 oz Au/ton (6.8 metres of 19.54 g/tonne). The Little Boulder Basin discovery may provide the best analogy to the deep exploration planned for the Hatter area and the Ivanhoe Property as a whole, as it demonstrates that high-grade gold mineralization exists over a considerable range of vertical depth throughout the Carlin Trend.
An initial drilling program by Great Basin at Hollister in January 1998 tested one of the vein systems containing a 1994 Newmont core intercept of +30 oz. Au/ton (+1,029 g Au/tonne). Using a N40E oriented fence of six vertical core holes at 25 foot (7.6 metre) spacing, Great Basin's drilling crosscut high-grade intercepts in the northern area of the deposit. Hole IH004 pierced a very high-grade vein zone of 4.6 feet grading 11.13 oz. Au/ton and 103.4 oz. Ag/ton (1.4 metres grading 381.6 g Au/tonne and 3,545.17 g Ag/tonne) within a thicker interval of 10.6 feet assaying 4.96 oz. Au/ton and 47.8 oz. Ag/ton (3.23 metres at 170.06 g Au/tonne and 1,638.87 g Ag/tonne). Unlike the Newmont drilling, this hole was not lost and another intercept of 12.6 feet grading 1.64 oz. Au/ton and 39.0 oz. Ag/ton (3.84 metres at 56.23 g Au/tonne and 1,337.15 g Ag/tonne) was intersected further down the hole.
The 1998 drilling program encountered the first reported quartz-silver-selenide-electrum veining reported in the Valmy Formation and the Ivanhoe area. The first hole in the fence of drilling, IH002, intercepted a very thick banded, brecciated and cockscomb-textured micro to cryptocrystalline quartz vein zone with minor disseminated sulphides. This style of veining had not previously been demonstrated in the upper plate Valmy rocks anywhere on the Carlin Trend. Smaller but similar vein intercepts were found in 5 of the 6 holes, with the higher-grade zones in 1H004 displaying the most interesting vein and sulfide mineralogy. Great Basin's geologists noted several similarities with high-grade core samples from the nearby Ken Snyder Mine in the Midas District, owned by Franco-Nevada Mining Corp. These include visible electrum, a black silver selenide series mineral naumannite-aguilarite, and quartz vein banding with quartz pseudomorphs after bladed calcite; the presence of electrum, naumannite-aguilarite, pyrite, and kaolinite - an assemblage similar to that in the Midas area - was later confirmed by petrographic work. The vein zones at Midas are hosted in volcanic rocks, which are age-equivalent to the Tertiary bi-modal suite overlying the Ivanhoe area. These same volcanic rocks do not appear to host vein zones at Hollister, but rather, occur as diffuse argillic-altered zones of low-grade gold mineralization. The Midas-style veining at Hollister is hosted predominantly in the underlying Ordovician-aged upper plate Valmy Formation.
The similarities between Hollister and Midas prompted Great Basin to design an exploration program to test for lateral continuity of the newly discovered veining along a postulated N47W strike to the vein zones, and other potential vein directions. Significant results were obtained in all four holes drilled. Great Basin planned and implemented a two phase $5.0 million exploration program in 1999 to test the newly interpreted and defined multiple vein systems beneath the Hollister deposit. This program included drilling angled core holes to establish the presence and continuity of this high-grade gold-silver system.
Drill holes tested projected intersections of anticipated major ore-controlling structures trending northeast, east and northwest beneath the Hollister deposit; 59 holes totalling 47,827 feet (14,578 metres) were drilled. Geological mapping and compilation of all existing data at Hollister and Hatter was also done that generated additional high-grade structural targets for drill-testing.
Beginning in 1999, reverse circulation precollars were drilled through the Tertiary strata to reduce overall drilling costs, increase the average penetration rate, and to avoid "squeezing ground" where the pervasive argillically-altered tuffaceous rocks made it difficult to keep the hole open.
Problems with drooping or steepening in the RC precollars was minimized through constant experimentation with different types of downhole tools and stabilizers in the early drilling phase, and casing and gyro-surveying to ensure that hole had not deviated too far for core drilling to hit its target.
The 1999 drilling program resulted in the discovery and initial delineation of two high-grade gold-silver vein systems, Clementine and Gwenivere, in the Valmy Formation beneath the Hollister deposit. At the end of 1999, these vein systems had been drilled over respective east-west strike lengths of 1,800 feet (550 metres) and 1,000 feet (305 metres).
Approximately $10.0 million was spent on exploration in 2000, including 143 drill holes, totalling 141,832 feet (43,230 metres). Drilling in 2000 in the Hollister area extended the strike length and number of gold-silver drill intercepts on the Clementine and Gwenivere vein systems: the Clementine system was outlined over a strike length of 3,000 feet (914 metres), and the Gwenivere system over a strike length of 2,000 feet (610 metres). In addition a third system, called South Gwenivere, was discovered and traced over at least 500 feet (152 metres) (see Figure 3). Analytical results from holes drilled in 1998-2000 are tabulated in the 2000 Annual Information Form and in a 2000 report by Akright.
Exploration in 2000 also took place outside of the immediate Hollister area. Drilling at Velvet, an area located 1,400 feet (425 metres) north of the Clementine vein system, encountered high-grade gold mineralization in a new vein system. Rotary hole 204 returned 15 feet of 0.56 oz. Au /ton, (4.6 metres of 19.20 g Au /tonne) including 5 feet of 1.04 oz. Au /ton (1.5 metres of 35.65 g Au/tonne) in a banded quartz vein intersection in Valmy Formation quartzites.
At Hatter, located to the east of the Hollister area, the enclosing stratigraphy is composed of quartz-rich clastic sediments and a composite granodiorite intrusion. Holes in the Hatter Stock were drilled at shallow 45-degree inclination to give maximum exposure to shallow, epithermal targets at about 1,300 feet (396 metres) below surface. Although one of these holes hit narrow-banded and/or sulphidic veins, only modest gold values were encountered. Historical gold intersections at Hatter are either (a) proximal-internal to the stock or (b) proximal-external to the stock in an area that is cut by several dykes compositionally similar to the Hatter Stock. Significant gold intersections have been obtained from depths up to 2,450 feet (747 metres) below surface, including 2.39 oz. Au/ton over 1 foot (81.94 g Au/tonne over 0.3 metres) in hole IH174. Gold mineralization at Hatter appears to lies at significantly lower elevations than the veins successfully drilled in the Hollister area.
Preliminary three dimensional (3D ESCAN) processing of a 1990 resistivity field data set revealed a distinctive resistive envelope signature enclosing the Clementine-Gwenivere vein systems. A new ESCAN survey was undertaken in 2000 to complement and expand the 1990 data coverage, and extended to the north from the Velvet-Butte trend and to the south and east over the Hatter stock area. Over 1,600 potential fields originating from over 1,600 current injection points were measured; these are defined by over 84,000 individual potential field measurements. Three anomalies were identified for testing. Soil and lithogeochemical surveys, totalling 2,325 soil samples and 654 rock samples, were carried out over the grid-area established for the 3D ESCAN surveys. Weak pathfinder-element geochemical anomalies were outlined that correspond with the three ESCAN targets. These targets have not yet been tested.
Drilling through 2001 continued to delineate the strike length and number of gold-silver drill intercepts on the Clementine and Gwenivere vein systems. To December 31, 2001, Great Basin completed a total of 205,443 feet (62,619 metres) of drilling in 216 combined reverse circulation precollar and core tail holes. The last hole completed in 2001, IH-214, was designed to test for the presence of Devonian carbonates (Popovich and Roberts Mountain Formations) beneath the Roberts Mountain Thrust in the Hollister area. A precollar was drilled and cased to 1,400 feet (425 metres) where it was determined that the casing would seal the hole and eliminate any drilling fluid losses. The core drilling proceeded to 5,500 feet (1,675 metres) using HQ equipment, was changed to NQ equipment with a 20-foot core barrel and the hole completed to total depth of 6,940 feet (2,115 metres).
The deep hole shows that the platform carbonates of the Roberts Mountain Formation extend west under the Hollister deposit. Samples from the base of the Rodeo Creek Formation immediately above the Roberts Mountain Formation (the location of many of the Carlin Trend deposits) are anomalous in Au, Ag, As and Sb, although the intersection is not of ore grade. However, the presence of mineralization in stratigraphy indicates that many of the criteria contributing to the formation of a "Carlin-type" deposit could be present beneath the Hollister-Hatter area.
A re-interpretation of exploration information for the eastern half of the property resulted in the recognition of a second major structural trend on the Ivanhoe property. The north-northwest trend of the newly identified major fault structures is the same as the principal ore-bearing structure at Ken Snyder and other mines in northeastern Nevada. This new structural trend provides potential to find significant, additional high-grade gold vein systems.
SouthGold Agreement:
http://www.secinfo.com/dqd6r.2t.c.htm
SouthGold shareholders:
1.2.3.31 "Southgold Shareholders" means Arequipa, Exploration Targets, John Cruise, Pangea, Rietbult Exploration and Sovereign Portfolios and each of their successors-in-title;
1.2.3.32 "Southgold Shareholders' Proportions" means:
1.2.3.32.1 Arequipa, 19,1%;
1.2.3.32.2 Exploration Targets, 19,1%;
1.2.3.32.3 John Cruise, 10,6%;
1.2.3.32.4 Pangea, 39,4%;
1.2.3.32.5 Rietbult Exploration, 7,6%; and
1.2.3.32.6 Sovereign Portfolios, 4,2%;
15. SALE RESTRICTIONS ON THE SOUTHGOLD SHAREHOLDERS
15.1 The Southgold Shareholders shall inform GBG in writing should they wish to dispose of the whole or part of the 10 000 000 GBG common shares obtained by the Southgold Shareholders in terms of 5.3.2 and the price at which it they are willing to dispose of the shares.
15.2 GBG shall use all reasonable commercial efforts to find a buyer for the shares the Southgold Shareholders have indicated they wish to sell in terms of 15.1 (up to a maximum of 6 000 000 of such shares) at a minimum price of $1,00 each on terms and conditions acceptable to the Southgold Shareholders.
15.3 GBG will have the right to require the Southgold Shareholders to sell up to 50% of the GBG shares the Southgold Shareholders have indicated they wish to sell in terms of 15.1 at the highest market price obtainable, but provided the price shall not be less than $1,00 per share.
15.4 The Southgold Shareholders shall pay any brokerage fees payable in respect of the sale of their shares in terms of 15.2 or 15.3. Any other transaction costs relating to such sales will be borne by GBG.
15.5 Should GBG fail to place the shares referred to in 15.2 within 30 days of notification by the Southgold Shareholders in terms of 15.1 and provided that any regulatory hold or selling restriction period in respect of the shares has expired, the Southgold Shareholders shall be entitled to sell the shares without restriction, except those arising from laws of general application.
15.6 Once the Southgold Shareholders have once complied with the procedure outlined in 15.1 and 15.3 in respect the disposal of all or part of the GBG common shares acquired by the Southgold Shareholders in terms of 5.3.2, there shall be no further restrictions in favour of GBG on the Southgold Shareholders' right to deal with any of the GBG common shares acquired by the Southgold Shareholders in terms of this agreement.
______________________
Hecla Agreement
http://www.secinfo.com/dqd6r.2t.b.htm
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...
Those July 22 warrants expire tomorrow..., will be interesting to see whether Alamos can start its move to the upside...
Anyone know the current status of that Mexico court case, hopefully will be resolved successfully by end of month...
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...
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...
GABRIEL RESOURCES (GBU : TSX : C$2.42) - BUY - 12-MONTH TARGET PRICE:
C$4.00
Brian Christie
Comment: Political uncertainty decreases Gabriel valuation
Recent disparaging remarks from the Romanian Prime Minister regarding the Rosia Montana project leads Gabriel to cancel a C$28 million bought deal equity financing. Gabriel will now complete a fully marketed equity deal, which will see the issuance of at least ten million shares. In the short-term, we believe that the shares will be under pressure. We have
further reduced our equity pricing in our model, which results in a decrease in our NAV to C$4.18 from C$4.36 per share. Until we see further clarity on the political front, we have reduced our NAV multiple from 1.3 to approximately 1.0 times. Our target price has subsequently been reduced to C$4.00 from C$5.50. We continue to like the longer-term fundamentals of the Rosia Montana project and the shares therefore remain a BUY.
__________________________
FWIW, have sold 85% of my Gabriel, looking to reenter upon next private placement, Gabriel will have to raise at least another US$20M, IMO, this year...
Capex Lotto...
Your $61M estimate appears low (especially if it is Canadian), but I am no mining expert...
If your figure is in fact C$61M, on behalf of CBD shareholders, I am awarding you the contract... Start work immediately, don't wait for the paperwork...
Anyone know the likely capex for Meadowbank?
Estimate CBD will have the following cash balance on 12/31/03:
Current cash (less est liab)...... $19M (6/25 news release)
Todays placements =............... $25M
Remaining 2003 drill program...... ($9M)
Feasibility Study cost estimate... ($1M)
G&A estimate for 2003............. ($1M)
Projected cash at 12/31/03........ $33M
Depending on Meadowbank capex, this $33M balance may go a long way towards financing this mine at 66%:33% debt to equity = Can$100M ??
Given Meadowbank far north location, my understanding is capex may be a large number, anyone care to venture an estimate...
Gabriel's bought deal buys the farm
By: Tim Wood
Posted: 2003/07/11 Fri 17:40 EDT / © Mineweb 1997-2003
NEW YORK -- Fresh government opposition to Gabriel Resources [GBU] Rosia Montana project in Romania has scuppered a two day old $20 million bought deal priced at C$2.80 per share. Gabriel today (Friday) announced that the arrangement with RBC Capital Markets has been converted into a “managed deal.”
The proposed offering was dead in the water as soon as Romanian Prime Minister, Adrian Nastase, reiterated personal objections to the project despite favourable findings by a parliamentary committee. The committee released a positive ad hoc report on Monday at which time Gabriel confirmed that it was proceeding with construction of the mine.
Gabriel’s stock price was immediately bid up, facilitating the offer. However, Nastase early on Thursday declared his dissatisfaction with the report, putting the stock into a dive before trade was halted at C$2.52, a loss of nearly one fifth on the day. Trade resumed on Friday at 12h30 priced at a mere C$2.11 before rebounding to C$2.30.
Nastase made the comments during a biannual luncheon with foreign journalists, during which he was asked his opinion of the report. He responded that he had read the report and did not “like it”. It is curious that the prime minister would be so intent on micromanaging the project and it may suggest that other factors are in play.
Romania has two great sensitivities since the overthrow of the Ceaucescu regime – orphans and the environment, both of which require delicate politics. Consequently, Nastase may be employing a public strategy of passing the ultimate decision for Rosia Montana into a bureaucratic channel where compliance and legality will be the sole determinants.
RBC was due to buy the entire allotment of 10 million shares for resale to other investors. Now it will merely offer to sell the units for Gabriel at the best price it can receive.
Gabriel’s stock price has been deteriorating after it became apparent earlier this year that it would require more money that expected even as capital requirements rose; delays aggravated by activist opposition to the project.
The firm has $17 million in cash, down from $35 million at the start of the year. It cannot postpone this fund raising without delaying mine construction with a critical phase about to start. Two further fund raisings are expected this year with total funding requirements of $50 million for 2003.
Face value
At face value, Nastase appears to be have already decided in favour of environmental and social activists who say the impact of the proposed mine would be too negative irrespective of compliance and economic contribution. The mine site is hardly pristine after decades of state mining mismanagement capped by the Baia Mare disaster that spilled toxic effluent into the Tisza and Danube rivers.
Romania’s parliament is due to ponder the committee report this September and it will become clearer then whether Nastase’s populism is opportunist or genuine.
An indicator may be his pre-emption of the committee report in early June when he called the project "environmentally risky" – a phrase that played well in Romania’s media. It seems improbable that Nastase could have developed an informed opinion so early, and his subsequent deference to the ministry of the environment – at the very time that Gabriel is about to launch its own environmental impact assessment – which would allow him to wave the project through whilst confirming to supporters that he demonstrated the necessary concern and vigilance.
That would be positive for Gabriel; however, the ad hoc processes heighten risk. Pressure is mounting for a public referendum to poll the views of local residents. Activists have taken note of the successful obstruction of Meridian Gold’s [MDG] Esquel gold project in Argentina that was opposed by four fifths of the residents of the nearby town, and that eventually led the provincial governor to halt development.
Sources say Gabriel would easily win a local referendum since the majority of residents do support mine development although several are holding out for more money. That contrasts with statements by the leading opposition group, Alburnus Major, which claims to represent most of the families in the village.
It has been an incredibly turbulent year for Gabriel with high profile management shuffles including the resignation of founding shareholder Frank Timis who has been a lightning rod for criticism, not least because of youthful drug convictions and suspicion about his Romanian power broking after its anti-Communist revolution.
Gabriel remains resolute, if disconsolate. "Gabriel believes the development of the Project is good for Romania and its economy and Gabriel's development plans for the Project are environmentally sound," said Oyvind Hushovd, chairman and chief executive, in a statement.
thanks much, this is what I wanted to know:
"First none of these people are mining engineers of gray hair and long rep. They are not fast draws in the mineral business. They are promoters and fancy prospectors."
There actual plan is:
"The current plan is to start with a much smaller mining program (1,500 t/day) with a higher grade "starter pit" at the Box deposit only (about 1.5 million tones at 3 g/t). The starter pit will be the first step in realising the full potential of the total resource. The global plan for the Goldfields Property would be to develop, by expansion of the proposed Box Mine plant, a central treatment plant to process ore from the Box Mine, the Athona Deposit and from successful exploration of known gold targets in the area."
Also, they plan to use a Gekko IPJ:
"gravity testwork has been done and a total gravity flow sheet has been designed using coarse milling. This latest testwork has been done by Gekko, in Australia, to test the applicability of their Inline Pressure Jig (IPJ). By grinding to only 500 microns, more than 85% gravity recovery can be expected using a very simple plant."
Given your statement "none of these people are mining engineers", it is likely best to wait on the sidelines and see if they can actually hit their numbers.
The Box/Athona discovery IS the Goldfields Mine...
http://www.kasnergroupco.com/GreaterLenora/properties/goldf.html
After 10+ years, looks like it now has the debt financing to get developed... Apparently, only $12M was needed to finance all the capex needed on this Box/Athona mine... What do you know about this Box/Athona now renamed Goldfields Project?
echarters, on another subject...
Do you have any opinion on GLR Resources:
"GLR Resources Inc. (TSX: GRS), armed with a substantial and easily-mined gold resource and a $12.4 million financing agreement, is about to make the leap from junior exploration company to a full-fledged gold producer. Once in production, the company expects to pay off its capital costs in less than three years. Operating costs are expected to be about $195 an ounce. Given present gold prices, this means GLR could expect pre-tax revenues of C$48.3 million, with an annual cash flow of more than C$9 million."...
"June 3, 2003 TSE: GRS
GLR ENTERS INTO GOLDFIELDS PROJECT FUNDING AGREEMENT
GLR Resources Inc. ("GLR") is pleased to announce that it has entered into a project funding agreement with Union Financial Services Corporation ("UFS") pursuant to which UFS has agreed to lend USD$12,435,756 to GLR to fund the construction and development of GLR's Goldfields Project."
Is this GRS Goldfields mine a decent gold deposit? Have you had any business dealings with Robert Kasner before?
Any comments on GRS would be much appreciated, and likely save me the trouble of further research... You can get further info at http://www.kasnergroupco.com Thanks!
Well you keep changing the rules... First it was dependant only upon financing, now you seem to think not...
So your statement now is: "If the N-S veins constitute a "100% change in a mineral resource or mineral reserve" ... then they must be reported on by an independent qualified person.
FWIW, I certainly am not confident the identification of a N-S vein would constitute a 100% change. The Ivanhoe property currently has 1M measured/inferred ounces. The likelihood of a now identified N-S vein adding another 1M ounces (i.e. 100% change) is not a high probability. Further, the drill holes of said N-S vein are already part of existing GBG drill results included in the East-West veins (i.e. Clementine/Gwenivieve veins).
FWIW, I doubt if Hecla or its geologists can be considered "independent qualified person" under the rules since HL owns 50% of the Ivanhoe joint venture and GBG and HL both have cross-ownership of each others shares. I believe HL ownership of GBG shares AND HL 50% ownership in the Ivanhoe joint venture would make Hecla and its geologists NOT independent.
You sure are a stickler on these 43-101 rules... I guess you will now come back and re-define "100% change"... Then I will come back with a "Clintonesque" statement on what the definition of is, is. Then you will come back with "Supreme Courtesque" language of knowing pornography when you see it...
seems to me, you have answered your own question:
"If the talk is not directed at a share issuance or investment then it may not be considered ruled by the 43-101 or the SEC."
You may have Burnstone and Ivanhoe confused...? The N-S vein comments concern the Ivanoe Nevada USA mine while Burnstone/SouthGold mine is in S Africa.
The Ivanhoe mine requires NO further GBG investment. Hecla is required to fund ALL US$23M required to bring this mine into production. GBG has over US$15M cash in bank per my recollection (did not to go to secinfo to get the exact number). All Burnstone capex required for remainder of this year should be well under US$5M, IMO. Thus, GBG has no need for cash anytime soon.
FWIW, GBG IR claims several investment banks have offered them bought deals (i.e. PP) in the past few weeks, all of which have been declined. GBG really has no need for any additional cash until the Burnstone financing. This will require about US$85M (estimate, exact figure not known) in late 2005 of which over 60% can likely be financed, assuming the bankable feasibility study comes back positive... Ivanhoe mine should be netting over $23M cash flow ($27.55M at $350 gold before GS&A) to finance Burnstone starting in 2005.
Nonetheless, unfortunately, I do fully expect GBG to conduct another financing in 2004, old habits never die and GBG has consistently issued new shares like candy... I wish like heck GBG would internally finance Burnstone, this is viable. GBG really has no need for additional cash ever again, given that Ivanhoe does have the 1M ounce reserve per their feasibility study and $350 gold (Hecla believes they have at least this 1M ounce reserve...)
echarters, I certainly agree...
"but yes, unless they are drilled, they do not know it."
FWIW, GBG has made no formal or informal press release saying they have found a N-S vein at Ivanhoe or even that such a vein system may exist. I am very surprised GBG management would make this statement at their AGM..., I sure was not expecting such a statement to be made, but if Jackc says they made it, then they did... No such statement has ever been made in a press release.
My understanding is GBG has reevaluated their drill holes at Ivanhoe and have held discussions with geologists from Ken Snyder and other nearby mines, and as a result of this review, believe there is a likelihood of a N-S vein system. The only Ivanhoe reserves I am counting on are the 1M ounces already identified, anything else is gravy... But you are correct, unless they drill it, they do not know, and thus GBG should not have made such a statement at the AGM, IMO.
Also, the SouthGold/Burnstone shares can be increased if more gold reserves are discovered in excess of those identified. However, it is my understanding (phone call this week) that the SouthGold/Burnstone shares can NOT be decreased if substantially more gold reserves are identified at Ivanhoe. Thus, if GBG "KNOWS" that the N-S vein system exists at Ivanhoe, then why would they not have a clause to decrease the SouthGold share issuance upon a large reserve increase at Ivanhoe... For that matter, if they KNOW, then why do a substantial share issuance for Burnstone at all... Guess a similar/offsetting increase to reserves could be found at Burnstone, but if they KNOW, then why do the Burnstone transaction at all...
FWIW, I spoke to IR around June 19th about a possible N-S vein structure (based upon drilling incline from USX East pit) and they did NOT advise me that they knew it was there..., thus again am surprised that they would know it was there at the AGM meeting date...
Nonetheless, it does appear to me that the incline from the USX East pit (scheduled to begin in 4Q03) does in fact parallel a suspected N-S vein structure (especially if it goes a bit further north). I am not entirely confident of this (they took away certain drill hole maps from their website and replaced them with broad vein maps w/o drill hole numbers), but this does appear to be the case. In any event, as stated, the only reserves at Ivanhoe I really expect (and what is expected by investors given the current GBG share price) are only the 1M ounces already identified plus maybe 20% more likely to be identified when the incline drilling/testing is finished.
In regard to your comments:
"By SEC rules he CANNOT say that mineralization on other claims infers mineralization on his own... What the 43-101 is saying is that if I get a room full of people and talk about raising syndicate money for a claim group, I HAVE to have 43-101 opinion to talk"
Am not sure what rules govern what can be said and not said at a AGM, there was no press release regarding these AGM comments. Further, GBG has no plans whatsoever to issue more shares or a PP for the rest of this year at a minimum so your raising syndicate money comments may be moot since they have no intention of raising money anytime soon, IMO.
In conclusion, let me reiterate that I am very surprised GBG management would make this statement on a N-S vein at their AGM... I am at a complete loss figuring out how to explain such comments...
Jackc, could you e-mail me at amarks@msn.com using GBG as a subject heading so my e-mail program does not delete your message...
You seemed to know a lot more about Great Basin on June 19...
"It's simple. Biggie veins. Biggie Gold. Biggie money. Biggie fun. Buy, buy, buy.
It is obvious that if they drill only 100 more holes they will find that vein. If they don't, it wasn't meant to be. Let me know if they don't have 15 drills on the property by tomorrow at noon. If they don't fire the geologist and start over.
Best way to start a mine is push the red button on the control panel on the upper left that is labeled "START MINE WITH THIS BUTTON" and stand well back. Have someone handy to blame when things go wrong.
EC<:-} "
The board manager would not let me delete your post...
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."
small test heap-leach program in late 2003...
Anyone know when the test leach program results are due out? If Chester Millar's alchemy can increase gold recoveries from 67% to 72% or better, this would have a very significant impact on the project IRR... Any thoughts or opinions here?
from the RBC report:
"Alamos Gold intends to complete a small test heap-leach program in late 2003. At this time, the company is proposing to develop three, 2,000-tonne pads containing oxide, sulphide and mixed ore. The program is to evaluate several aspects in an
attempt to improve recoveries, including finer crushing of the ore and agglomeration."
Looking at that Enterprise Value Chart, am glad I own both Alamos and Metallica Resources...
that new RBC analyst report is now out:
http://www.alamosgold.com/i/pdf/30351647.pdf
July 22 warrants still looking good, extra cash into the coffers...
And awaiting that Mexico ruling by July...
thanks Jackc
GBG obtains AMEX listing:
http://www.greatbasingold.com/gbg/NewsReleases.asp?ReportID=64600
VANCOUVER, British Columbia--(BUSINESS WIRE)--July 8, 2003--Ronald W. Thiessen, President and CEO of Great Basin Gold Ltd. (TSX Venture: GBG - News; AMEX: GBN - News), is pleased to announce that Great Basin has received formal approval to list its common shares on the American Stock Exchange ("AMEX"). AMEX has advised that this approval is contingent upon Great Basin being in compliance with all applicable listing standards on the date it begins trading on the Exchange, and may be rescinded if the Company is not in compliance with such standards. Effective July 14, 2003, common shares of Great Basin will be listed for trading on the "AMEX" under the symbol "GBN". The Company will continue to trade on the TSX Venture Exchange under the symbol "GBG".
"The Management and Board of Directors of Great Basin are pleased to have secured a listing on the American Stock Exchange," said Mr. Thiessen. "The AMEX listing will provide the many interested investors in the United States with greater transparency, and more convenient and readily accessible trading opportunities. We also see the move to AMEX as another milestone, as the Company's evolves from a successful exploration firm to a mid-tier gold producer."
Great Basin's evolution was initiated in North America's premier gold producing environment - the Carlin Trend of Nevada -- where the Company discovered high-grade gold-silver vein systems on its Ivanhoe Gold Property. Through an agreement with Hecla Mining Company, these high-grade veins are being advanced through the underground exploration, development and production stages.
In the fall of 2002 Great Basin agreed to purchase Southgold Exploration (Proprietary) Limited and thereby acquire an interest in its second project - the Burnstone Gold Property. Burnstone is located in the world's largest gold district, the Witwatersrand Basin of South Africa, from which over one billion ounces of gold have been produced. Since that time, Great Basin has carried out extensive resource delineation drilling, and recently initiated engineering work toward feasibility studies for a long life, low cost gold mine.
For further details on the Ivanhoe Gold Property and the Burnstone Gold Property, please visit the Great Basin Gold Ltd. website at www.hdgold.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.
ON BEHALF OF THE BOARD OF DIRECTORS
Ronald W. Thiessen
President and CEO
Jackc: OT
Have some info you should be interested in, please send me your e-mail address:
amarksp@bearforum.com
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
The way will not be clear until Gabriel has consummated their next private placement... Gabriel needs to raise at least US$40M, IMO, within the next 5 months...
Happy to step aside until after this financing...
"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.
GBGLF
billg comments from bearforum board:
http://www.bearforum.com/cgi-bin/bbs.pl?read=292660
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 $20M by shares outstanding to determine a reasonable selling price/fair value...
My speculation remains that a minimum of Can$.80 will be distributed, regardless of the NEM share price. Nonetheless, you are correct, management will be tempted to reduce the distribution given the NEM share price increase above $25.50. Will be interesting to see what happens...
FWIW, my reasoning for the Can$.80 minimum distribution is based upon the June 17, 2002 MOY private placement at Can$.80. Believe these PP investors (via Haywood Securities) will get all their original money back via the distribution..., otherwise they will be much less likely to invest with MOY again... Also, as posted previously, per my understanding via phone call, MOY was thinking on distributing between 60% - 75% soon after the announcement, and I would think 60% would be the minimum... based upon that now dated conversation...
Thanks for your comments on the AGM, Jack.
<If trial mining is decided on, would add about 12 mo to dev time.>
<A decision also has to be made on whether to sink a shaft and trial mine, a common practice in the South African mining industry. Another decision for Great Basin is whether to go it alone or to bring in a contractor or a partner, most likely a South African mining group.>
Did you get a sense on whether GBG will go it alone or bring in a contractor or a partner on Burnstone? Did they talk on capex requirements for Burnstone and whether the total capex of $85M for a dual shaft mine is accurate? Will a mill need to be built or can GBG use an existing mill, or is this mill included in the $85M?
<London listing cost about 700k US, split about half between actual work and bal for guarantees.>
My reasoned speculation is GBG wants AIM/London listing primarily because of Burnstone shareholders. Am thinking the London listing will enable SouthGold shareholders to realize better value on their shares and warrants, will better enable the Black BEP partner to raise funds to finance their 20%-26% ownership in Burnstone, will enable more effective GBG lobbying of S African government on mining issues if shares traded on both continents, and will allow some of SouthGold/Rob Still’s institutional shareholder base from Southern Mining to participate in GBG more easily. Just reasoned speculation…
<The formal part of the meeting had the increased options as the only point of contention. I was the only holder to object but my 129k sh would have needed extra 300k to knock it down. The mgmt 2.1M sh could not vote, and since only another 12% of the holders bothered to vote at all, it carried by a small majority.>
Well at least we tried…, I would have preferred issuing them options at a US$2.00 strike price, that would make them think twice before issuing new PP shares. Actually, I would vote to eliminate management stock options altogether and just give them 500,000 shares each for free as a “gift” with a 5 year vesting period. Then management actions would be more closely aligned with shareholders…
<There may be something to support a primary vein theory. At yesterdays AGM mgmt stated they KNEW it was there. I then questioned them - you KNOW it is there ? - they said we KNOW it is there. Last yr they said they thought it was there so this is a change. They also said talking to Ken Snyder supported this.>
Now that is interesting. However, if they know it is there then why isn’t management buying shares in the open market… All GBG management would need to do is delay Burnstone development for another 18-24 months and they could finance Burnstone via internal cash flow from Ivanhoe ($24M cash flow per year @ $350 POG). If and when GBG can operate on internal cash flow alone and not need further PP’s, believe we will then see the real stock price move upwards…
<Since HL has only 5% of the land JV'd, I asked if there is a plan to get stockholder value from the balance? Theissen said they are laying low on drilling plans until the HL permits are in in Aug, but will get drill permits after that, and can drill both from surface and underground later from HL access. I questioned the right to drill under and they said it is in the HL contract. (If more ore is found outside the JV it is reasonable to assume extra payment at the going rate, but if a main cross vein system develops I don't expect a bid battle as HL has the decline. This may be worth checking out.)>
Agree, this is worth checking out… HL gets a management fee for mining at Ivanhoe, so I would assume that any extra production outside the Hollister area would be subject to that management fee (transportation plus this management fee = $20 of the $133 cash cost, with transportation making up the bulk of this $20 I would assume). Getting the use of HL incline capex development for free, since it is part of the contract, to develop subsequent GBG 100% owned ore is great news...