RE: Buyout or JV? My rough analysis of the buyout value when it is bankable is $2 per share if all 750,000,000 shares are issued and 10,000,000 oz gold are bankable. That would be a net $1.5 billion cash for the buyout. Lots of these type of deals have a stock kicker in a new operating company. A deal like this would be hard to pass up. It is important to remember that the market price of the stock must exceed $5.00 per share before Mutual Funds and many institutions are permitted to invest. Hedge funds, however are free to invest in anything at any level if they can get it past committee. I have some personal experience where a hedge fund put up $15 million and a private investor is in the process of putting up $6.5 million pre-feasibility for a specialized gold recovery operation. This company hired a sharp marketing guy to put those deals together. They have about 150 million share outstanding and sell for about $.55 per share. In my opinion the buyout value of this company is $12 per share with 10,000,00 oz bankable gold. IMO DGRI is a big winner if credible results are achieved with the current expanded drilling effort. So to end speculation that we can do nothing about, it becomes apparent that every potential investment has a comparable market value for each state of development that has been proven in the market price for the stock. It appears to me that Mr. Hollis knows what he is doing in terms of structure and consideration of all of the options that have and will present themselves during the process that we are all now engaged in. Buyout or JV? Way to soon to tell but when a deal is on the table, its on the table. It's possible that the JV guys are banging on the door right now and if it were me I would encourage them to do their due-diligence but that doesn't mean if Barrick or Newmont stepped into the picture with a buyout that I wouldn't listen. Ultimately, the stockholders will prevail. And, I ask you, would your decision be to accept a $2 per share offer or suffer the burden and expense of production at $400 to $800 per oz. and possibly get the stock value to over $5.00 per share after a few years? In summary, with what I know so far, I'm all in and would support the $2 buck buyout.
AI
