Enigma, As you stated, the October, 2000 timeframe is the deadline for many of these JV's to put up or shut up. The next five months should be an interesting time to be a PGD shareholder. I think the statement by Potvin in the annual says it all. Simply put, they intend to call the hand:
"Should feasibility studies not be completed in October, 2000 as contemplated in joint venture agreements signed five years ago, Pangea could see its interest increase in the highly prospective Bulyanhulu South holdings and in the 1.8 million ounce Kahama project. Barrick gold must complete a feasibility study and arrange production financing by September, 2000 in order to increase its interest to 65% in the 2.2 million oz Golden Ridge deposit"
Add to this Suguti/Ushirombo, Mincor must complete bankable feasibility by Oct, 2K.
Looking at how this plays out, I think that ANGLY moves first for the whole company before October. I also believe ASL will be in play again as this unfolds, with ANGLY the likely winner. I see TNX as a beneficiary as well. I would imagine that ANGLY/ASL and ABX accelerate exploration on PGD projects, but black out news. PGD would want to get the news out to stimulate the stock price, but may have a hard time doing so on properties where it's not the operator. That's why there may be more going on at Golden Ridge, Buly South and Kahama (pre-offer news blackout)than we are aware of.
Therefore Tulawaka would be PGD's news release card, with a flurry of annoucements all summer. It would be in PGD's self interest to get a bidding war going, but preferably at higher POG. Their strategy is now probably in dynamic flux, watching and waiting.
Make sense to you guys? |
