Ann: Citigold enters $72 million Agreement, page-49

Surf, there are 1.563billion shares currently on issue. I would agree with you regarding that if the all the money was going direct to CTO, however it is not clear to me if the total amount goes to CTO or only the first $10mill to pay out the debts and the remaining $62mill goes to CTO and is held solely by CTO within the JV along with its 40% share of the assets or if the $62mill is split between the partners of the JV KIG 60% , CTO 40%.

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"KIG payments – KIG’s interest will be earned in the JV after the receipt of the $72 million total investment due to be paid as follows;
i. $10 million on or before 6 May 2015
ii. $62 million on or before 10 June 2015."


The ASX listed CTO entity holds the 1.563billion shares on issue, using your figure of $48mill the shares are valued at 3.1c. This is approximately 100% premium to the pre JV announcement share price and market cap. Though today the SP is at 2c and market cap $30mill having already been as high as 3.2c in the last few days.

I still find it interesting that KIG will be buying the gold produced at market prices, seemingly returning 60% of the purchase price back to themselves as a JV partner.

I have asked for my earlier post on this thread to be removed as on review I could see my assumptions were possibly incorrect. Once all the detail is available a more accurate picture maybe able to be drawn.

Overall I do think the deal was done with a gun to the head of CTO, there were no other options a big win win for KIG if gold is actually produced and a lifeline for shareholders and in particular for management and staff.
I remain skeptical at best.

Thanks for your input.

DYOR My thoughts and ramblings only