Well CKG and AAU have completed their merger and CKG has been strong ever since with average volumes of 2x - 3x what CKG used to do......CKG has been pressing up aganist strong resistance at $7.20 and it is only a matter of time before it breaks trought to knew highs.....
Chesapeake is completed this merger by issuing shares,
warrants and rights to current shareholders of American
Gold. CKG will issue 0.29 CKG shares or 8,948,102 shares
and will have 28,685,897 outstanding. Chesapeake will also
issue to American Gold shareholders 0.145 CKG warrants
per share of AAU for a total of 4,474,051 warrants. Each
whole warrant will allow its owner to buy one share of
CKG at $8 for a term of 5 years. Chesapeake will finally
issue 0.29 CKG right per share of AAU for a total of
8,948,102 rights. These rights will allow its owners to buy
one share of CKG at $1.00 once gold has traded above
US$850 for a period of 90 days.
The Warrants are now trading and have never looked back....if you want warrants and you did not get them from from buying AAU you will have to pay up the open market and their is a good permimum to pay.....
Batman has quoted Randy Rafiel as stating they've hired some former Cambior people who worked on the metates project and are excited about getting back at it.
They figure there is a starter pit of somewhere around 3.5 mil ozs that is profitable at $400-450 gold. He seems to be saying this project will be profitable at quite a bit less pog then originally thought.
It's gonna be big 20 mil ozs. just have to be brought up to 43-101 standard.
Nicaraguan project is also in the works with some hiring being done, no drilling has been done there before, but gold is being mined on the project, things will be slow there in the rainy season. Eight veins to be explored.
CKG has JV some of their targets: Christopher James Gold has contracted a drill rig and will be drilling Cucaracha in late February or early March. They recently announced a financing and should have all of the money for their 2007 programs in the bank by Christmas. People are on the property now doing preparatory work.
Pinnacle and Chesapeake are still finalizing the agreement for La Calavera, They will not be drilling there until late Spring.
There are some seniors that have casually expressed an interest in it. They have been asking about Chesapeake’s plans for Metates and whether Chesapeake might be interested in having a JV partner for it. So far, everyone has been consistent in that nobody questions that Metates has size, but now they need to know about the cost base structure to know if it makes sense. This is the big reason why Randy is really pushing to get this deal wrapped up, as he wants to make sure it is locked up before he can have any discussions with anyone about it.
CKG is a major part of my PF and has been since it started trading....those who can buy and hold will soon be rewarded as things are picking up and I suspect double digits will happen before the end of the year....
Wayne |
