Golden Sun29 Apr 2025 11:36
From the new interview... Not quite too sure what this means:
One of our investments is a company called Gold and Sun Resources.
It is now in production, but it is often the case with most mining companies are undercapitalized. They were building out the mill. It's now in production.
It's well on its way to its target rates of operations. So that's not an issue, but they needed some capital. And so we provided them some capital by saying, we will buy gold that you will deliver to us later when you're in full production and generating cash flow.
And they are. And the agreement was we would buy future gold at $1,750 an ounce. We have purchased 1,210 ounces of gold.
And for a six month period, there is a float. And so if we pay $1,750, and at the time the price of gold is say $2,100, now we're immediately capturing $350 worth of value per ounce. We've been fortunate.
And so the price of gold has rallied. But after six months, it locks in. And then thereafter, if we leave the loan outstanding, it accrues by 20% per year, compounded quarterly.
And so we have 1,200 ounces. At the moment, that's worth... I'm trying to remember exactly what it is because it's changing. But at the current levels, our portfolio of 1,210 ounces, we value at about $2,951 per ounce.
In a year, our portfolio, our value would be about $3,550, give or take. And that would be worth about 3.2 million pounds or 9p a share for the company. So this is but one of our investments, but it's an interesting one in as much as that we were buying at a discount, the price of gold has rallied as we'd hoped.
As we moved along with this, we also were able to agree to them granting us some warrants. So we have 1.2 million warrants, 1.242 million warrants at an exercise price of 75 cents a share for Golden Sun. And when all is said and done, if there was a takeover bid for Golden Sun, say in six months, and it was at more than $1.75, we could take our position, which is now would be worth an excessive or close to $4 million and convert it into shares at $1.75. And if say there was a bid for the company at $2, we would get another kicker on that.
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