"Gold Road Resources has done an impressive deal with South Africa’s Gold Fields, selling half its stake in the Gruyere project in Western Australia for $350 million and a smelter royalty to get funds for development.
Given the market value of Perth-based Gold Road was $548m when it went into a trading halt ahead of the announcement today, and that RBC had valued the full Gruyere stake at $427m, the $350m sale price was more than the market was expecting, even without the royalty."
IMO what a fantastic deal achieved for this company it allows the project to be derisked and brings in a company who has the experience with deep underground mines, so what does this now say about Gruyere???
Also of importance without further dilution to shareholders, allowing for a rock solid foundation further exploration and growth, well done to the Gor Executive/Management Team!
I would expect the stock to be re-rated when it is relisted on ASX from the suspension, maybe those shorters are feeling a little seedy when they read the numbers, and will need to get a piece of the action now?
However one thing I have learnt is to never predict the market, it is a strange beast.
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