In a post on the other side I said: "Anyhow, it looks like the net cash is something like $0.5B in ELD war chest. Would that be good enough for the rest of ICG? Presumably ELD would try a share conversion option first to conserve the cash.
Read more at http://www.stockhouse.com/companies/bullboard?symbol=v.icg&postid=25682751#jyqxFJiiRomdWdFY.99"
So, if ELD has $500M (assuming in USD = 500 x 1.3 = Cdn $650M) that would be enough to offer a similar amount to ICG just for the deposit at Triangle plus near by satellite deposits. For the sake of argument let's assume that is what ICG calla the Lamaque Gold Project (Lamaque South). After, the the up coming PEA and the updated RE in Q1 2017, the RE would be in the order of 4MozAu. Since ELD has people in the Technical Team of this project, it would already have a good idea of the contents of the PEA and the updated RE. If not, they can crank out the numbers by themselves.
How much would be a fair offer?
- If ELD offered $1/s for each of the 86% of ICG (or ~430Ms) the cash cost would be ~ $430M, or ELD can issue 430Ms/4.5 = 95M ELD shares using 4.5/1 conversion (ELD SP: $4.5/s). Share dilution would be ~12%, which is quite small. That means there is some room for ELD to sweeten the deal a bit more.
- At $1.25/s, the conversion of 3.6/1, i.e. ELD to issue 430M ICG shares/3.6 = 119M ELD shares @ 119/(716 +119) = ~14% dilution.
Just my speculation. What do you say, take the cash and run?
GH
