Dan, what the article does not mention is that the drilling on all the MRDDF properties is already being financed by the Majors with contracts similar to the following:
"Barrick can earn a 60% interest in the Horse Mountain property by spending $2.0 million in exploration expenditures over four years, of which $300,000 is committed to be expended prior to December 31, 2006. After completing the 60% earn-in phase, Barrick can elect to earn up to an additional 10% interest in the Horse Mountain project (for a total 70% interest) by funding up to an additional $6.0 million in exploration over a six year period scheduled with a minimum annual work commitment of $1,000,000. Upon completion of a feasibility study, Barrick can earn an additional 5% interest (for a total of 75% interest) by arranging to finance Miranda's share of project financing."
I am sure that McEwen has a master plan but if he is going to create another GG it does not seem that buying MRDDF fits into logical game plan.
The rich get richer, MRDDF also has partnerships with Newcrest Resources Inc., Newmont Mining Company, Placer Dome U.S. Inc., Agnico-Eagle (USA) Limited, and Golden Aria Corp.
There is probably a premium in MRDDF due to speculation caused by McEwen but I would not buy MRDDF for any other reason than there is a lot of drilling on their properties by their partners.
PDG has partnerships with many of the small caps in the trend already.
IMHO the best way to participate in the "Cortez Trend Play" is through ABX, but what fun is that<g>.
Disclaimer: positions in ABX, MRDDF.ob |
