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RedLakeCapital If I am readying correctly is also a low grade mine.
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@lukejackson $.305 pp meaning 4 month hold
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@lukejackson PP's always at a discount
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@MiningBookGuy @lukejackson - PPs not always at a discount. especially not a 20%+ discount $F
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@nobshere @CriticalInvestor $F any guesses how long it will be halted. Any politicians involved in GRP Min ? GRP bought all that from Midway Gold......Have to get out paper and pencil I smell a rat but have not yet determined if true ...
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anonymous a small shareholder $F - not impressed
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RedLakeCapital PP does not have a hold. Subscription receipts are free trading
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@tommy May I share some opinions on the proposed Fiore $F / GRP Minerals (ex Midway) transaction? @fscwire/fiore-and-grp-minerals-to-combine-to-create-fiore-gold Followed Midway for years and Giustra a lot longer. The Midway chart is still shown on the featured pic of the CEO.CA app in the Apple App Store. James Fraser and I stalked their production ramp up and subsequent bankruptcy a few years ago. Was another shareholder tragedy in the mining sector. Midway made poor choices but failed as a result of being capital starved at the wrong time. Decision of a key institutional shareholder, not management, for what it's worth. Last year, Riley Skinner at Haywood got me into the 1st GRP Metals round at .35c US to help buy the assets out of bankruptcy. I jumped at the opportunity. Former Midway CEO Ken Brunk and Haywood's David Elliot and Andrew Williams had teamed up to buy the assets that had a market cap of about $300 million in 2014... for $5.5 million a year later. Brunk had built over a dozen mines. Immense leadership and engineering experience. He's turned around the Pan Mine, making good gold now and growing. Gold Rock is one of the best exploration plays in Nevada, with an established resource. Huge opportunity to drill off the 10 mile strike here. $GSV followers should pay attention. Multi-million ounce Golden Eagle deposit in Washington State could be what the likes of Kinross or Adamera $ADZ are looking for. Three better, more advanced assets than Fiore's existing portfolio, in my opinion. Brunk building gold production. Warman telling the story and exploring Gold Rock. Giustra behind consolidation in Nevada. So we have short term pain in the share price with the financing at about 24% discount to market. This is a standard TSXV discount although surely disappointing to existing longs. But Fiore Gold ends up with way more heft and a key position in the jurisdiction all gold producers want to be, Nevada. Take my comments with a grain of salt. I'm a biased shareholder in both companies and brought the GRP idea to Giustra. I'm very excited to see it come to this point and wish them well with closing.
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@RocketRed @tommy $F Golden Eagle Deposit Documents detailing the metallurgical test work conducted by several unverified laboratories and consultants on mineralized samples from the Golden Eagle deposit were reviewed and documented by Differential Engineering Inc. (Differential Engineering, 2009). The test work described in these reports have not yet been verified through independent test work, and it is unknown whether the samples are representative of the Golden Eagle deposit, however, the reported results indicate that the Golden Eagle deposit represents a refractory gold and silver target for further metallurgical testing, with the material types and grade similar to gold ore processed from the Carlin Trend in Nevada. Hecla and SFPG conducted various metallurgical tests in the 1980s and 1990s which demonstrated that direct cyanidation is not a feasible process option for most of the samples, that the gold is finely and homogeneously disseminated in the samples, and that the mineralized material is generally refractory for gold extraction. Refractory gold refers to mineralized material that is naturally resistant to gold recovery by direct standard cyanidation and activated carbon adsorption processes. Calculations based on estimated abundances of different types of pyrite in a metallurgical sample suggests that about 66% of the gold could be present in solid solution in arsenic-bearing, fine to medium grained pyrite. Gold extraction by direct cyanidation was limited to 11.8% to 27.8%, except in one composite which exhibited gold extraction up to 59.2% by direct cyanidation, for a composite weighted average of 22.4%. Whole ore cyanide extraction therefore does not appear to be a viable extraction process for the bulk of the deposit. http://www.midwaygold.com/i/pdf/Golden_Eagle_8-4-2009.pdf
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@MiningBookGuy @tommy RE: https://ceo.ca/f?ecaf869a0980 - good details in your post. however, i take some issue with the following quote: "So we have short term pain in the share price with the financing at about 24% discount to market. This is a standard TSXV discount although surely disappointing to existing longs." $AEM made strategic investments into $OOO and $GQC at significant premiums earlier this year: @marketwired/otis-announces-strategic-investment-by-agnico-eagle @marketwired/goldquest-announces-c22860000-strategic-investment Now you might be correct that ~24% is a standard discount for the TSXV. But seeing examples like these 2 just further emphasizes the pain for a typical CEO.CA retail shareholder (like myself... though I don't own shares in $F, it feels like it's immediately going to trade down and I'm glad I don't own right now) Anyway, these $AEM deals might be unusual and a poor comparison being a 'different type' of a deal. But just adding some context for my original opinion. I appreciate all the other opinions presented on this as well. *Disclosure - I do not currently own shares in $OOO, and I do own some shares in $GQC @fscwire/fiore-and-grp-minerals-to-combine-to-create-fiore-gold
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@tommy @miningbookguy Neither F or GRP are majors making a strategic investment. Apples and oranges.
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@MiningBookGuy @tommy - fair enough, but surely many $F retail shareholders 'didn't sign up for this'. again, appreciate your input, it could end up being a killer deal in the long-term
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@tommy @MiningBookGuy I hear you. Dilution is the #1 enemy to juniors. I don't want to downplay the discount. However there is meat on the bone now and I think it's a better story. $200+ mil invested at Pan and Gold Rock Fiore is buying for a fraction... in paper.
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RedLakeCapital Worse part @tommy is that financing is being done with Subscription receipts which means dilution hits the markets right away. Also find it quite strange that Fiore was always sold as a south american player and it has now shifted focus to US which I am not a big fan off.
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@Goldfinger @RedLakeCapital The deal doesn't make any sense based upon the stated objectives of the company. It's like they suddenly called an audible and forgot to tell the players on their team (shareholders), not to mention it's a costly audible. Might work out in the end somehow, but right now i've got nothing but questions. $F
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RedLakeCapital @Goldfinger Couldn't agree more with you
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@HHorseman @Goldfinger Exactly. This is now a whole other company it seems. The Chilean assets went from flagship status to barely being mentioned.
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@lukejackson tim warman said dozens of times that they were looking to bring in development assets. This just didn't turn out to be in SA. Frankly if this was just an exploration company it was a very expensive one. So use your shares to bring in 3 assets, one pouring gold, with a runway to 100+k ounces of production, no debt and roughly $100 million market cap... all of a sudden it's a good buy...
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@lukejackson I hear you if you were surprised by the shift I was toobut the risk profile just dropped and lots of blue sky and leverage to the price of gold. If they can drive this to 250,000 ounces of production what's that worth? Drill enough to put solid resources on the 2 properties and this upfront dilution may be all you pay for the forseeable future. This move sucks if you're a trader of the name but I think awesome for long term value creation.
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@soccerfan $F not a fan of his deal either. Huge discount on placement and no hold? I agree with @goldfinger . Makes no sense.
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@soccerfan $F mkt cap after financing should be 50$M? Means GRP is valued at 100mill? GRP insiders must be laughing all the way to bank on this deal..hope I'm wrong but F$ shareholders just got Fawqed
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@Stocksluice I have just one $F'ing question: If this is such a good deal, why would this be bad for the stock price?! I smell a skunk!
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@lukejackson "Following completion of the Transaction, but excluding the Concurrent Financing, it is expected that Fiore shareholders will own approximately one third of Fiore Gold, with GRP shareholders owning two thirds of Fiore Gold."
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@lukejackson GRP valued @ $60m using the $.305 raise price
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@Stocksluice Apologies for my spur of the moment off the cuff comments. A closer look seems more promising. Besides, positive drill results may still transpire.
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@tcu Yes and no. No because they are first trying to secure loans in order to line up the ability to start the mine. They have tons of warrants they can cash from deep pockets if times continue to be tough. The likelyhood of debt financing through dilution I believe is a risk in 2019 mor than the next 18 months. I contacted IR and they were only going to do a public offering once the SP hit much higher prices. Now obviously this is contingent on the price of U but they are very bullish on he outlook as am I. If the last cycle is any indicator, the new producers will have the most torque in a new bull market. And I would also suggest that $GXU is a major take out target by areva who is next door with depleting assets. So it concerns me a little but if they time this right, a financing to become a legitimate producer with long term contracts in hand (which they are currently working on) would be a net positive for shareholders. Dilution is never good, I am experiencing this with $F and $CDB right now, but $GXU's situation is totally different. We got a shitty deal in those two cases (unless you are very long to see the merger and takeover become accretive)
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@Chiel Anyone got some good info/reports on those GRP holdings? (besides the link tommy's supplied, which is much appreciated!)
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@Newton Appreciate the background from @tommy.
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@Newton "This move sucks if you're a trader of the name but I think awesome for long term value creation." h/t @lukejackson
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@Goldfinger @Newton that @lukejackson quote is ultimately meaningless. Value creation for whom? Value depends upon your cost basis.
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@lukejackson Lol value creation in that you have an operating mine instead of a drill play and 4 million ounces of gold right now. A platform to build 75,000 ounces of production in the short term and 150,000-250,000 ounces in the medium to long term. And my cost basis is currently quite high here. I was in the $.55. I was not in this story for a drill play though.
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@Goldfinger Ok fair enough. Do you agree Fiore management should have an open shareholders call? @lukejackson
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@lukejackson its also a bet on the gold price - as in, before they had absolutely no gold and now they have gold and quite a bit.
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@Newton Funny point from #NeilAdshead about what exactly "creating shareholder value" means. One example where market cap up huge, but share count up as much. Share price flat. Another example where cap up, count flat, and price up. Creating value doesn't always translate into higher share price.
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@Goldfinger Disagree @Newton. I will discuss on subscriber call tomorrow. One can create a huge market cap through financial engineering, doesn't mean value is created for shareholders.
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@Newton Possible to riff on that even more and make distinction between people who focus on secondary markets versus primary markets, ie. trading vs funding. Point may be: if you are participating in financings then can grow your position proportional to total share count. In other words, your returns track market cap closer than if just buy $X shares In market one time. Not sure how strong that line of argument is, tbh.
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@Newton Sounds good @Goldfinger. Ones in past have been great! Looking forward.
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anonymous Curious as to what this opens up at when trading begins. Like @lukejackson said now they have a producing mine and a decent exploration portfolio with their assets in chile to grow. Certainly takes a lot of risk off the table. The .305 cent financing is still above the .26 cent initial round financing. Big money and names in this one. The .305 will likely be filled quickly by the insiders so my expectation is this trades around 40 cents until people get their head around this deal that in my opinion is actually very positive for the name. $F
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@Newton I am curious if it will open prior to closing financing. Would expect that it would, but maybe not? Seem to recall short timeline noted in NR...
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@HRA-Coffin Just for the record Thomas, the deposit that GRP owns in Washington State has nice size but is decidedly not what either $ADZ or $K is looking for. Adamera is looking for sediment hosted gold and, secondarily if they happen to trip over it, epithermal veins. GRPs deposit is something quasi-Carlin which doesn't have the grade of the better Carlin trend deposits but, unfortunately, is refractory as most of them are. Not an easy nut to crack and probably a bitch to permit.
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@HRA-Coffin Its an RTO the way it was structured @Newton. Unless they can sweet talk the regulators its not trading for a couple of months probably.
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@Newton Thanks @HRA-Coffin. RTO seems fair with GRP taking 2/3 of new co. I didn't realize those transactions are typically locked up for so long on pubco side. Only seen it up close once from private co side and didn't notice if public shell was halted, tbh.
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@HRA-Coffin Hopefully less as the combination of Haywood and Frank may get the placement done quickly but there is a lot of paperwork and filings involved and $F may have to hold a shareholder vote. You often do with RTOs and that takes a month and a half, minimum.
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anonymous I am not sure why most of you are annoyed with the financing at .305 if you purchased shares in the open market at .40? The stock might trade around .305 but I highly doubt it. At least in the junior space most financings are done below market price. Perhaps I am missing something? Or are most of you in this at .55?
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@DanO $F 's Chilean mineral properties that they've got from $an (same management at $an $lix $f etc) are not that good that's why they had to move fast and secure other properties. The last deal? I have not analyzed that one yet but one poster said that it was refractory etc. Later.
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@DanO $F 's Chilean mineral properties that they've got from $an (same management at $an $lix $f etc) are not that good that's why they had to move fast and secure other properties. The last deal? I have not analyzed that one yet but one poster said that it was refractory etc. Later.
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Jasond @Anonymous your guess is as good as mine. I feel likely around .40. I too feel most that are in this trade bought into the .55 financing. @DanO wouldn't see why the Chilean properties are not that good like you say. Difference is these new properties one is a producing mine. Just my 2 cents. Fwiw
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anonymous http://fioreexploration.com/fiore-and-grp-minerals-to-combine-to-create-fiore-gold-a-us-focused-gold-producer-and-developer/..Fiore shareholders receiving .265 of a share for each Fiore share held. So does this mean if I hold 100 shares of Fiore stock today I would own 26 or 27 shares after the transaction is completed?
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anonymous Is that then .265 x .305 ?
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@RocketRed 2017-06-19 16:28 $F Halt Trading Fiore Exploration to remain halted pending receipt and review of acceptable documentation regarding the plan of arrangement
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