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Gold/Mining/Energy : GITENNES Exploration (ase:GIT) -- Ignore unavailable to you. Want to Upgrade?

To: CJ Quantumwell who wrote (891)	11/23/1997 6:17:00 PM
From: charred	Respond to of 1092

CJ: I think this is a great deal for both groups. It nice to see some positive deals like this in these terrible market conditions. The CEO of Metallica is Craig Nelson. He is an explorationist. It was a very good deal for Metallic to give up 50% for $20US million in development and using Cambior's financial support to put the mine into production. Metaliica share 95,000 ounces of gold equivalent per year. Not bad. In addition, Cambior is the operator which Mr. Nelson the time to acquire new projects for furture growth. Excellent Management decision. Let the big boys worry about the day to day operations of running a mine. Metaliica has a bright future. It has interesting projects in Brazil and Chile. Its market cap is only 50 million, 30 million less than GIT. As I said in reply 890, look for companies with their market cap lower than their asset value. Here is one. Metallica is 10 times the company than GIT. It looks like Cambior will also have a bright future. Their projects in Guyana shield, La Arena property and now the Cerro San Pedro. This maybe the time to pick up shares of Cambior. They explore like a junior. Very agressive. I feel if the market conditions were better Metallica could have had a better deal. Maybe 10 million more in development costs. However, the management is focused on long growth and not focusing all their resources on one project such as GIT. I feel in a few years Metallica will be bought out or merged with another comapny. Such as Da Capo Resources and Granges now called Vista Gold. Checkout Oroperu. I have recently became a shareholder. Also Chesbar in Venezuela should be very interesting. They recently received their permits for drilling. Chesbar has the backing of Barrick. If they hit, the company will never have to worry about financing again. Barrick is a shareholder of both companies.