I don't think this will happen. Smarts u/g as it is will have 75m A$ in net cashflow. Low top-cut and cut-off only slightly below reserve grade. A plant that will cost north of $100m A$ and could be utilized at the Omai mine as well. A joint venture with Barrick. Lots of untapped exploration potential in elephant country. >A$100m in tax losses carried forward.
The deal with creditors - the best Troy could achieve - values all of this at below US$30m.
Omai Gold would be mad to not attempt something. Do they have the resources? No.
But they do have the connections. E.g. take a look at an "affiliated" company.
Not necessarily a better deal to shareholders. Key here is that creditors "only" bring cash that has no upside. Other proposals would leave us diluted but with something offering upside itself. And will finally unlock the potential of two properties in Guyana. Excellent fit.
We will see.
TRY Price at posting:
3.7¢ Sentiment: None Disclosure: Held
