Rob,
Thanks for the issued share capital number. But I believe that it is 14 million fully diluted - before the proposed private placement.
Yes, how much is the exploration program going to cost ? 52.5% is relative to the exploration cost.
The deal would be OK, if the exploration cost is reasonable - remember Riosun did not have to spend any time, effort or money to get the concessions directly. They also have had the opportunity to test and sample from the concession areas before comitting - so the risk is already assessed. What a way to go.
I agree with your comment on the assay - Give it to us, better the geologist report. It seems that he is the only guy who is qualified to meet the VSE on this matter.
On the private placment, I believe they can do upto 10% so maybe 1 million plus shares. Then, we get 15 million shares fully diluted. Then, the earn-out shares for the 500,000 to 1,500,000 ozs of gold. I think they cannot get over 20% without shareholders' approval, change of control issues, etc. So let's say 20% or 3 million shares. Fully diluted will be 18 million shares !!!
When we get to this stage IT WILL BE BINGO. The emeralds project would have generated $3 million income and the gold project would have proved or produced 1.5 million ozs of gold and 52.5% gives 787,500 oz. At today's gold price it means a gross income of some US$270 million or Canadian 378 million !
Gross income per share = $21.00 plus
Earnings per share (say half) = $10.50
Price/Earning multiples = ???
Price of Riosun shares +???
I don't know, would someone care to work it out and tell us ?
There are positive prospects and big potential, you bet Rob, however,the communication has to polish up and be more professional. |
