Your reasoning make sense to me, although Im not sure if your assumptions on the cash cost are correct.
However, I still think this is a good negotiations outcome from the MYG management, taking into account of the following :
1. MYG is a junior explorer , not easy to get debt funding from bankers. 2. Miminial dilutions to SH 3. Only 7.5-15% maximum of MYG gold is at stake, the rest 92.5% to 85% is still MYG's.
This is a win-win position for both sandstorm and MYG. If you want to use Other People's Money , then you must be willing to sacrifice, its called take and give. There is no such thing as free lunch out there in business world.
I am happy with JG's hard work so far, hence Im happy to hold until productions.
MYG Price at posting:
9.8¢ Sentiment: LT Buy Disclosure: Held
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