re: + proposed palmarejo project transaction + I reckon considerable thought has gone into this restructuring for the benefit of all including the Directors who are among the largest share and option holders.
My interpretation of the proposed transaction announcement is as follows:
Transaction is between non related parties
Directors are major share and option holders
Sometimes the parts are worth more than the whole
Canadians usually put a higher pe on resources than Australians
To fast track a listing on TSX there is a “cost” being a slight leakage in ownership of Palmarejo project only. Other benefit apart from fast tracking is making Palmarejo self sufficient for funding with a raising of $8m.
Immediate listing is achieved by using a Canadian capital pool company Bonita. Important to have the right connections when going to another country. Should also come in handy in the near future if funding is required to start mining.
End result could be
A higher value (even after leakage in ownership) on Palmarejo from TSX than with it inside BSG on ASX
A value being attributed to the non Palmarejo assets which is not happening at present. Just compare a valuation on the Palmarejo resource and market cap of BSG to see this point.
Have I missed anything or does anyone see it differently? Share price post announcement does not reflect my understanding as outlined above.
BSG
bolnisi gold nl
