One of the best trades occurs when you discover a company that is trading below the value of the net cash on its balance sheet .
if Comibol is the Buyer as mentioned in the article and is prepared to offer $35 million to RAU this values RAU at 1.1 cents or a 250% net cash gain from the current Trading price of .003 cents .
Currently RAU is so unloved that it is trading at a market cap of 10 million with a 1.3 million ounce gold deposit with further drilling results due ,
offcourse one can play it safe and wait for confirmation of the sale agreement within the next 30 days but a 250% increase in the SP would have been already factored into the SP thats assuming RAU would accept a low ball offer as there have been a number of parties that have expressed informal interest in the Amayapampa project.
20/04/12 ASX Ann
The Board of Directors of Republic Gold Limited have today agreed to a non-binding agreement for the sale of the wholly owned subsidiary Minera Nueva Vista, Bolivia.
The agreement is subject to shareholder approval and a 30 Market day due dililgence by the proposed purchaser.
Details of the proposed acquisition will be supplied to shareholders once due diligence is complete.
The Board of Directors will continue to keep the market fully informed on further developments
BIG Price at posting:
6.0¢ Sentiment: Hold Disclosure: Held
