Value Microcaps Junior Miners

[checkmate28]

Monte Re Gowest GWA.V Apologies for being MIA.

As to an Xstrata buyout, I've asked Gowest mgt many times about diff scenarios. Heres my take. Back ground - In 2012, Glencore, bought Xstrata Plc for US$62 billion in shares.
A company like Xstrata Glencore (Glencore plc) wants to make money, but Gowest isn't even pocket change, nor worth the time and effort now. They would however, be interested in what Gowest could become in short time after the project is further derisked.

So if Gowest did the following:

1) get fully permitted this year like they claim

2) Get financed for the $21M to go underground and get the bulk sample done. Notes here. They still have some millions now. Gowest will get back alot of the money they spend on the bulk sample from the produced gold. Quick math - a 300,000 Tonne bulk sample will Net 5000 Oz gold at $1200 with a 5 gpt grade. That equals $6 Million in revenues. With a CAPEX and risk so small, they believe they can get some debt financing. Maybe use the bulk sample as collateral? Additionally, there are $4.5 million in warrants held by their finance partner Future Fortune. They will probably exercise those warrants once they see its needed. Their Chinese partner, Future Fortune, may bring the finance deal?

3) Prove the Pre Feas true and continued to drill the resource, thus increasing production with low additional CAPEX

4) Drill some of the other nearby targets to get at least an inferred resource, outlining another area with a high probability profitable mine.

At this point, Gowest might be attractive enough for Xstrata, Goldcorp or another large company to put up a few hundred million for Gowest and another $100 million for a 3000tpd mill and produce a couple hundred thousand ounces. I could easily see this. You can look at the company presentation and see Gowest has a couple million high grade ounces at Bradford.

http://www.gowestgold.com/wp/wp-content/uploads/2014/10/Corporate-Presentation.pdf

For the time being, Gowest has an NPV of $40M and a MC of $15M with $1200 gold with only an avg of 40k oz production. They need a combination of $21 M to get $5M positive yearly Cash flowing in. Those are great numbers for such a small market cap and that just gets things started. With those numbers I dont see a lot of risk.

Have to ask yourself, If Gowest puts this together in a share holder friendly way, what will happen to the share price.

What if ore sorting works, they drill some more reserves, increase production and gold goes up a couple hundred bucks?

One more thing, This mine is in Timmins On, the epicenter of the Abitibi greenbelt, where half of all mined Canadian Gold was produced. Its going to get Much more market cap per once then Africa, Europe or even Mexico.

Gowest CEO Interview just out
http://business.financialpost.com/news/mining/ceo-interviews/gowest-gold-more-gold-near-timmins

Checkmate28