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Replies to post #26548 on Colorado Goldfields Inc. (fka CGFI)
10/09/11 9:15 AM
Taking_Profits Share Saturday, June 04, 2011 12:45:08 PM
Re: ficose post# 17793 Post # of 26562
ficose I Agree with parts of your post .
Quote:
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we're a lot further along now than we've ever been
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The one thing that attracted me to [CGFI] at the time was disclosure to the shareholders, foward looking plans etc. etc.
Has anyone figured out the reason for the Increase in the AS from 5 billion to 15 billion shares ?
Quote:
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Bloomberg-Colorado Goldfields Inc. Acquires Silver Wing Mine With $200
Colorado Goldfields will acquire the properties in exchange for 2-year restricted Class A Common Stock valued at $1.5 million, a 5% Net Smelter Royalty, and cash payments over time totaling $300,000
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IMHO $1.5 million = 10,000,000,000 (Billion shares) at a discounted rate of .00015 per share. in 2 years
akgoldminor Share Saturday, June 04, 2011 1:54:45 PM
Re: Taking_Profits post# 17796 Post # of 26562
TP, your math is a little off. At the current PPS of .0008, it would equate to 1.875 B shares, not 10 B. If the PPS only goes to a mere .01 two years from now, it equates to 150 million shares.
Getting $200 million of value for $1.5 million in shares and $300,000 sounds like a steal to me. Like less than a penny on the dollar. What's not to like about that?
GO CGFIA Respond | View Replies (1)
Chips Share Saturday, June 04, 2011 4:07:59 PM
Re: Taking_Profits post# 17796 Post # of 26562
There are other factors at work in this deal that you may or may not know about.
That said, I suggest that any assumptions you or anyone else makes as to the contracted per share value are simply that, assumptions. Doing that you can spin it any way you want. Based on your spin, evidently you want it to look horrid & shake the confidence we longs have in our company and its management.
Looking for shares at 0006 or 0005?
You won't get mine for that.
GO CGFIA! Respond | View Replies (1)
ficose Share Saturday, June 04, 2011 11:49:27 PM
Re: Taking_Profits post# 17796 Post # of 26562
I guess I can see where you think Silver Wing might get discounted shares if this was a stock option. AFAIK it's not, it's a restricted sale. ~1.8B shares is not too bad a deal for either side. While we know the mill is going to open eventually - they haven't turned the power on yet and this doesn't do too much for the bargaining power. Now we have a stronger company out of two entities that weren't that strong individually.
Silver Wing's whole future was tied up with Pride of the West opening. Without the mill, that property is a pile of rock. Sure, they had planned to eventually open their own 100 ton/day operation, but without the cash flow from CGFI's mill to get things started - it was just wishful thinking. This purchase just lowered the odds the company will fail.
Once the mill opens it's a whole new ball game. What the SW does is turn what was just a milling order for someone else - into our ore.
There are hundreds of mines in that area. People are going to wake up and think about digging up some of their own money. However, when they call up the mill what could be the response? "Oh a milling order? Sure, no problem. We'll have an opening in January when our mines slow down for winter." The miners will probably think about that and want their money a little sooner. The bargaining begins. You better believe they won't get the sweet deal Silver Wing got - leverage is awesome!
Gold in Silverton is like sand in San Diego, it just lays around until someone figures out what to do with it. Guyer hasn't been working with the DRMS just because the pain feels so wonderful, and the joy of a spartan lifestyle that comes with reinvesting most of his paycheck.
AI
