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Gold/Mining/Energy : Til Capital Ltd. -- Ignore unavailable to you. Want to Upgrade?

To: m jensen who wrote (117)	1/21/2013 12:29:39 AM
From: 31Floors	1 Recommendation Read Replies (2) \| Respond to of 185

As promised, went to the Cambridge Show and had a very good discussion w GPD management. I spoke to Bill and this is what I found out: - Spinout was done now, prompted by lack of market recognition of the company's assets. I asked a couple of times on this (the skeptical me), and each time it was confirmed that it was all about trying to better reflect the value of the company's assets for the benefit of all shareholders - and NOT anything to do with Brewery Creek or Red Kite - Royalty companies get better market valuations (no argument!) and getting the value better reflected is good for the shareholders and good for the company. As well, Midway has been making excellent progress, such as them getting financing, which happened after GPD got their's. This brings the Pan that much closer to production. When they first acquired the Pan it had 100,000 oz. (Me; today 1 million oz with 800k in reserves before they stopped drilling and moved the drills to Gold Rock) - Good relations are maintained with Red Kite. They aren't under any obligations to take any more draws, but it's there if they want it (subject to loan agreement terms of course). Great to know that the $10m drawdown can be repaid with interest, but without any penalties. They have not decided how to handle the next funding piece. There are many options. - Bill's super pumped about getting into the royalty business, aka the "banking business". He says he's much more excited by the gold royalty business compared to when he got into uranium back in the day. - He gets "5 calls a week about selling his royalties" lol! After the NR went out on Friday, he got a ton of calls. How many hundreds exploration companies are there looking for funding and how many royalty companies are there? - Lots of people want to get into the gold royalty business now: Van, T.O., N.Y. Me: So why don't they? Bill: Because it's hard to start (a portfolio of royalties). Say you've got $50m... and you buy two royalties, you'd have to get them right. Say you've got $50m and you buy one big one, you'd BETTER get it right. - They've got 32 royalties and a no. of them will be producing in the short term, and if you've been following along these are the bigger ones, commencing from the end of 2014. Parts of this portfolio was 30 years in the making, bought when they acquired the Campbell Trust in 2008. Again, Its not easy to build a royalty portfolio! - OK, so the royalty vehicle will provide funding for future GPD projects in the Yukon, then?. Answer: It depends, these will be two separate entities after all! (Me: Good answer!) - Timing for the spinoff? Too early to say, lots of legal and tax considerations; lots of work to be done. Maybe 5 to 6 month range?? When is record date? That will be advised in time. What will we trade at on Monday? Answer: Ok, I guess I'll have to wait till Monday to find out. - Timing on BC resource update and more detailed study, respectively, will be in the 3 mo. range. Later, I spoke to Janet and went over First Nations matters. They have the BC agreement that we all know about. There is a NND F.N. agreement in respect to Clear Creek exploration. For Grew Creek - which is located within the Ross River Dena territories - the F.N. that just happen to have won the law suit we have been reading about - they have an important Traditional Knowledge Agreement. What impact will the Yukon Court of Appeal ruling on consultations have on mining in the Yukon (and for that matter the rest of Canada?). I didn't get into this except a brief mention. I'll just say I don't know squat about First Nations and land claims issues!!!, and that the lawyers should do all right. 31Floors