Re: One down, three to go

Galahad Metals

4 projects in Ontario, Quebec and Nevada (Gold, Silver,Copper,REE)

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Panamax

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Re: One down, three to go

in response to

Re: One down, three to go

positive carry

posted on Mar 02, 2011 11:30AM

The story at GAX just keeps improving. The potential of the Bottle Creek spin-out has a great chance to lead to a share price increase for GAX. Let me provide an example -

Canadian Zinc (CZN) used some free cash to buy millions of shares of Vatukoula Gold Mines. When the production began to ramp up at Vatukoula, these shares became worth almost 50% of the market cap of CZN. The investing public responded to this "value" and the price of CZN has moved up over 60% in the last month.

If the Bottle Creek shares provide additional value to GAX, the investing public will drive the price of GAX up to obtain that value. It's a no-brainer - you get the resources of Bottle Creek and GAX for the same price.

I have always liked owning companies that spin-off projects. It seems to "leverage" the profit potential.