Great post from Yahooo stocks ...on GAU latest update ,,I 100% agree and want to BUY more GAU tonight on the TSX .. will be 100-200% higher next 12 months ..
Transformational Transaction is certainly the right term. They now own 90% of a 240K ounce a year active mine with the other 10% owned by Ghana government.
To get the other 45% of the mine it only cost them 105 M by my calculations plus a 1% capped royalty.
The 105M is in the form of 20M in stock now, and 85 M in deferred cash paid out in 25M (2025), 25M (2026) and 30 M (~ 2028) increments.
Most importantly, it leaves them with 128 M in cash and no debt right now as they have immediate access to half of the joint venture cash.
That means they already have the cash in pocket for the future payments.
Stock has a current market cap of only 148 M (diluted to 167M due to transaction) with 128 M in cash, no debt and a 240K ounce a year mine.
This is a mine that has a NPV of $630M at $2000 Gold at a 5% discount rate. Gold stock deal of the year at this stock price!!!!!!!
