Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
According to Proactive Investors au, Southern Gold is actively considering Bluebirds alternative sale/purchase proposal.....and the two companies are in close contact attempting to reach a deal........sounds very promising to me......
Of course.......but there is the tranche of cash on offer from a South Korean backer (with deep
Pockets ) of BMV, two portions of which have already been received by BMV.......in my view a deal will be done in the very near future......which will be in the interests of both BMV and Southern.....
I notice that the Small Caps Australian website has reported that Southern Gold has sold its 50% interest to BMV........almost implying that it a done deal........
I notice that the Small Caps Australian website has reported that Southern Gold has sold its 50% interest to BMV........almost implying that it a done deal........
It would appear that BMV are hopeful of a “speedy solution”......this would also be in Southerns
Interest. Don’t forget that BMV have some friendly financial supporters who have only just provided a second tranche to assist towards the commencement of production. A couple of million dollars extra to complete the deal shouldn’t really be a problem......
Both BMV and Southern Gold originally agreed that the deal could comprise a combination cash, shares and maybe royalties.......it’s just a matter of agreeing the combination to total the arbitrators figure.........it shouldn’t take that long to come to a conclusion......
Just a note....BMV is not an Aim stock...it’s on the LSE standard list........
According to Proactive Investors ...Southern and Bluebird have already agreed the price of
9,945,000 US dollars........it’s just about the mix of cash/royalties/and/or shares....and then we’re off to the races !
Of course the figures are dollars........
Don’t forget, Blubird has non diluting £20m facility (£5 already received) from its South Korean investment partners, so, given the short timespan to production an additional couple of million on the 50% Southern Gold price tag should be easily affordable. Also, reread the Align Research report of September again......based on a 50% risk factor the report suggests a share price of 34p plus........one of the best risk/reward plays on AIM.......
Dyr...of course, these are all just your own opinions. “In the past couple of years” is totally different from the current gold bull market....with unending quantitative easing.....here’s looking towards a good deal, an update on the progress towards opening the mines......and gold this year......
Although I’m a long term shareholder here...it might be of interest to also look at Bluebird Merchant Ventures ( BMV) who are in the process of concluding a 50% purchase from Southern Gold,with a view to begin gold production this year. Align Research view is Conviction Buy.....
I always consider a “tightspread” like a coiled spring. Just had a reread of Align Researches report, which now is headed ConvictionBuy........so we await details of the Southern Gold 50% purchase plus progress towards reopening the gold mines.........should e very interesting.
Also look at Align Research report of 28/9,which talks about a 30p plus share price following finance conclusion.....but this was without taking into account the additional 50% to be purchased from Southern Gold..........so on the basis of possible debt funding/offtake arrangement (ie no dilution) the share price should move rapidly upwards.........
TB check the update of 30/11 which gives the independent valuation of Southern Golds 50% at £7.5 m. BMV will urgently update how it will fund this 50% ....well before 26/1/21......
Most of the sells shown are in fact buys ! Blue Birds Over Dover next week........