Vango need to buy Superior Gold for $28mm today and I wanted to clarify a couple points that would make true net purchase price to vango of superior less than $7mm. First the 13500 oz if gold calls priced at $2900 per oz are just call options and are priced about $250 above current gold price and if executed by auramet after potential vango purchase of superior would add $39,150,000 in cash to vango treasury. Also Vango spent around $880,000 on legal fees last year so buying Superior would save yearly the portion of legal bill not spent to litigate against Zuleika. Also Superior has submitted its 80% of legal fees to wasc for vango to pay, amounting to about $650,000. Vango is of course disputing this amount in front of wasc so real winner in this litigation is the lawyers on both sides who get to bill for their hours uninterrupted. Vango eliminate all the pesky legal bills and the outstanding disputed $650,000 judgement, true cost of acquiring Superior for $28mm is net even less than $7mm, probably in $5mm range net or less than $5mm and this isn't even putting a price on all the time and aggravation involved in litigating. All vango management time spent litigating could instead be directed toward building out the business of gold production.
VAN Price at posting:
3.6¢ Sentiment: None Disclosure: Not Held
