re: Ann: $50 Million Investment in Citigold t... Hi guys,I do...

re: Ann: $50 Million Investment in Citigold t... Hi guys,

I do understand CTO hurted lots of people in the past and current.

I traded CTO at 18-18.5c before, I was a bit lucky, didnot lose any money.

3 years gone, resource looks like still remain the same, CTO failed to increase production again and again. However, do not forget Gold price has increased from $800 to $1700 /ounce. Now even 1g/t , 2g/t gold project revive since 2010, but most of Hotcopper posters who bited by CTO before are trying whatever best to complaining on CTO.

I understand this kind of "revenge" however I believe CTO is still worth much more than 10c when gold price is at $1700/ounce.

Yes, the deal is delayed, but CTO gave the reasons as UNDERVALUED. People may doubt the chinese investor retreat. This is clearly not that case.

In the past I was involved in some mining projects investment/negotiation, I can confirm when both parties announced the Price target, there should be at least 6 month's research/due diligence behind the announcement.

Board membership is always used as a condition to protect the investment and is more often used as "offtake right"

But in current CTO case, clearly the chinese investor has obvious intention to "prepare for takeover CTO". I believe the CTO board has realized this point, and donot wanna lose their control of the company.

All in all I believe current delay is due to the board membership.

Some people mentioned Bendigo mining, I have to say this is quite different story: UML encounterd low grade gold resource--2g/t at 1000m underground mining, but CTO doesnot have this problem, at least so far the 14g/t grade is still reliable .

I donot think it's time to scare,and I believe 6-8c range is good opportunity to buy.