republic gold limited enters non-binding sale , page-8

Greetings valuesearcher and yes, interesting indeed.

The potential buyer may not even be the Bolivian Government but that article which purported to be from the mouth of Cordova had me intrigued also.

With Cordova apparently discussing 35 million being spent on Amayapampa, were the Bolivian government attempting to plant a price seed for a RAU exit strategy?

It would give them, Morales and Co, a resource with an in ground value of around 1.6 billion and outlays of said 35 million plus plant costs of 150 million or there abouts and a cash cost which was stated as being under $500/oz.

Very tidy profit with no risk if that's been the plan all along……Simply stonewall for long enough on the draft mining code until the explorers are so frustrated that they end up having to be satisfied walking away with exploration costs.

If this is what unfolds, effectively pushing a small player out for input costs alone while taking on all of the risk, what foreign investor will go near Bolivia again?

In this case, If a decent sum of good will is applied above the project input costs, perhaps some international funds may continue to flow in……Will have to wait and see but i suspect many international players will be watching and Bolivia would know this.

Anything less than $50 per oz of resource (50 million) to walk away would be an absolute rip off for mine.

For the life of me, i couldn't fathom why anyone would be selling these at 0.2, let alone 0.01 of cent after they announced that the Bolivian Government had given both The Australian Government and RAU written guarantees of not nationalising the mine.

Get it, they are not going to steal the project from RAU...that was the inflection point for tremendous reward vs little risk and remains so at these prices for mine.

All the best to those having a dip…..lots of money to be made from these levels methinks.

This is very similar to ESI when Tincom walked or were pushed....The market sold it to a shell and so it should have but when they re-appeared, the bilge pumps kicked in and not many at that time figured the up verses down which is my point here......How much downside risk exists once the Bolivian Government states the above.


PS. Don't forget, they'd likely still have over 1 million in cash....1.6 mil a few months back.