The more ounces the better. Barrick is unlikely to bid.
The plan could be like this: - Omai Gold and Troy merge - financing could happen via New Gold, part debt financing and part equity in new corporation - 2.2 cents per share, roughly 850m Troy shares now = A$18.7m - same price as recapitalization but leaving more upside to current shareholders due to Omai Gold's resources - A$18m to be paid to creditors - A$10m needed to finance Smarts u/g - within first year A$25-30m in operating net cashflow - after a year A$7m more to be paid to creditors - A$45-50m in operating net cash flow thereafter
Could anyone resist this? Acquisition will pay for itself within 2-3 years. Plant for free. Smarts u/g upside you mentioned (lower cut-off and we are talking about 150-200k ounces) for free. Exploration potential for free. Barrick joint venture for free where Omai or New Gold could end up with a 20% stake in an elephant without spending a single cent.
TRY Price at posting:
3.7¢ Sentiment: None Disclosure: Held