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Gold/Mining/Energy : Endeavour Mining (EDV.TO, EDVMF) -- Ignore unavailable to you. Want to Upgrade?

To: Sultan who wrote (358)	4/23/2008 4:36:05 AM
From: Madharry	Respond to of 544

no surprise but approval to split into two companies for plg is official. I would think the discount will be cut in half very quickly.

To: Sultan who wrote (358)	4/26/2008 4:23:31 AM
From: Madharry	Read Replies (1) \| Respond to of 544

posted from another thread: "I stopped by the Pelangio booth at the Cambridge House show in Calgary this weekend for an update, and what a pleasant surprise I had. Putting together all the news of the past few weeks, it’s hard not to be excited about Pelangio. Regarding the Detour Lake Project being progressed by Detour Gold, what is already a 10-million-oz. gold deposit at $700 gold looks like it may well become much bigger than a 10-million-oz. gold project. Why do we say that? Apparently a hole has been drilled some 500 meters to the west of the $700/oz. pit that is mineralized. This hole apparently is mineralized with visual gold. Secondly, another hole north of the $700/oz. pit also pulled some good gold intersections. If gold mineralization is continuous between these step-out holes and the existing $700 pit, not only does the deposit increase in size laterally both to the north and to the west, but also the pit may now be built to a much deeper level where some very high-grade gold has been discovered in the past. Indeed, when I first started looking at Pelangio’s story, at a time when few if anyone I knew was anticipating anything close to a 10-million-oz. gold deposit, the idea was that these high-grade zones might be mined, but only by way of underground access. We don’t know how big the Detour Gold Deposit might get, except to say “possibly a lot 12 bigger.” What I can also say is that the French Canadian geologist I first talked to about this deposit after Pelangio made its deal with Detour Gold has been spot on in predicting that this was going to become one of Canada’s largest open-pit gold deposits. Restructuring Pelangio for Optimization of Shareholder Gains Yes, our investment in Pelangio continues to get bigger and bigger and it has already passed “40-bagger” status. And if this deposit keeps on growing in an environment where gold continues to rise, this is going to get even bigger. Yet, it is important to note that Pelangio continues to sell at a 19% discount from the value of its shareholdings in Detour Gold alone. Why so? Apparently if Detour Gold were to sell the project to a major gold mining firm, there would be some tax considerations for the holders of Pelangio that may account for a good portion, if not all, of this discounted price. The company is looking at a corporate structure that can remedy this apparent tax inequality in conjunction with other changes in the capital structure of the company. Keep in mind that while shares in Detour Gold (which owns the Detour Lake Property) are by far the most significant asset held by Pelangio, they are not the only assets held by Pelangio. Most significant of “other assets” are the company’s holdings in Ghana, smack dab in the middle of the Obuasi Gold Belt, one of the most prolific gold-bearing structures in the world. Pelangio has a very sizable land position there, and some of the same goldbearing structures that still hosts more than 20 million ounces trend on to Pelangio’s ground. With Pelangio selling at a 19% discount from its holdings of Detour Gold alone, that means that absolutely zero value is being given for the company’s holdings in Ghana and for numerous gold prospects in Ontario and Quebec. To try to gain some value for shareholders for these “other” properties held by Pelangio, management is planning a spinout of those assets plus 1 million shares of Detour Gold into the new entity. The thinking is that this new company should have a value of around $0.60 or so. Of course if 1 million shares of Detour Gold were spun out of Pelangio into the new company, Pelangio would in theory see its value decline by approximately 5%, or about 20 cents, given its recent price of about $4.00. But that would give Pelangio a net increase in value of $0.40. That doesn’t count the 19% discount, which management hopes to address by structuring a revision of Pelangio’s corporate structure. The bottom line for Pelangio is this. The upside potential for this stock appears to hold great upside potential, given the following factors: (1) The Detour Lake Project keeps getting bigger and bigger; (2) The market is penalizing Pelangio 19% because of some tax considerations, which Pelangio believes it may be able to remedy; (3) The company is planning a spinoff of assets other than Detour Lake, which should add a net value of plus $0.40 per share; (4) The exploration properties of the new company could rise dramatically with exploration success, most exciting of which is the company’s Ghana properties; and (5) We remain in a huge gold bull market."

To: Sultan who wrote (358)	4/29/2008 7:49:10 PM
From: Madharry	Read Replies (1) \| Respond to of 544

my canadian stuff has gotten demolished over the past week. The only one that I have a large loss in is kri.to . It seems like everything in Mongolia is at an utter standstill until the the june elections. as a result no one but wary bargain hunter has any reason to be involved buying this, especially given the current uncertainty in Mongolia. The sad reality is that if the powers that be cant even hammer out an agreeement with ivanhoe and rio tinto regarding what would be one of the largest coppermines in the world, we are a long way away from mining any uranium. filing this in the take a look at in a couple of months pile. the plg.to discount continues to be in the 20-25% range. I have suggested to the company that when they structure the new company they do it so that one share represents one share of detour gold. It will be exciting to see the new numbers from Detour Gold. I am anticipating a share price of over $5 on plg.to or its equivalent by year end. Should the discount evaporate and the price increase by 15% to reflect additional reserves it would reach about $5 without including the ghana company which could be worth as much as .60 more. on edv.to the company is now lamenting that it sells at such a large discount to the book value, this after telling us shareholders that nav was no longer important and would no longer be reported on a monthly basis. I guess management is upset because their options are way under water. this is what happens when management tells shareholders to go fly a kite. they go elsewhere, and I suspect they will be very slow to return.