>>if i may be so upfront, what is your relationship to the company and directors/insiders ?<<
I am not an employee of the company or related to any of the management of Gold City or any of it's directors. BTW, asking direct questions is a must for the internet and even then we do not know who we are talking with, so right from the beginning, I will caution everyone to verify everything I say, and do their own DD and subsequent uncovering of the facts. We will all learn together.
I will say that in the few weeks that I have been exploring GCP, I have discovered that they currently do not have a web site. I will be approaching them on setting one up and if they do that through me, I will disclose it.
>>it is unclear to me what GCPs ownership of the Old Nick is... currently 100%, possibly diluted to only 3 % NSR ?<<
Gold City owns 100% of the property. They have optioned up to 70% of it to AMT and Monument Mining Corporation, in stages. I know that they have earned 5% so far and if they spend 750,000 in 1997, they will earn another 10%. I am not sure if they have spent anything this year, as the financing they had arranged earlier in the year fell through do to the Bre-X effect. It is possible that we will regain 65% if AMT does not raise the necessary funds.
Of the remaining 30% that GCP retained, they have optioned off 15% of it to two other companies, subject to a 3 %, dropping to a 1% net smelter royalty. I am not sure if these two companies have already earned their interest, but I will check.
Bottom line is, at this present date, the least that Gold City could end up with in the Old Nick project is 15% with a 3% net smelter royalty on another 15%. After 10 million Canadian has been reached, it drops to 1%. This equates to about about $0.69 a share FD, without dilution considerations for mine development. If I remember correctly, management believes that 75% of the capital costs of an estimated 124 million Canadian, will be bankable, leaving the rest to equity. Of the remaining portion, GCP would be liable for 15% or C$4,650,000.00. Upon the completion of a full feasibility, I would expect we should be much higher then we are now. If we financed at C$1.00, we would add another 9.3 million shares FD. ( assuming a full warrant ) Even if we ended up with 25 million shares, GCP would earn C$0.36 a share.
Rich |
