trackers
01-12-2010, 08:41 AM
DMG - Dragon Mountain Gold
Currently the subject of a conditional takeover offer at a 50% premium to the current price....One of the lowest price per ounces goldie going around, and very much under the radar (found this one by trawling through low cap goldies with decent resources)
I hold a couple, wish I had a hell of a lot more but am fully invested at the moment. I'll pick up some more at some stage in the near future if I can
Market cap: $80million
JORC gold resource: 2.8 million ounces (Liba project) - Infill drilling has completed recently and an upgrade to this JORC is pending
Currently exploring at Jinshan (current resource expected to stand at around 650k with many targets untested) but expectations are that it will ultimately be larger than Liba.
Latest drilling (as of the last few days) has expanded strike by 300metres.
This picture should give you an idea of what they're onto at Jinshan...
3075
Takeover info:
Non-binding conditional takeover that is subject to: due diligence, FIRB approval and investor reaching agreement with minority stakeholders in DMG projects.
Seems relatively straight forward to me, but looks like they can walk away at anytime. There were several other parties showing (unsolicited) interest at the time also.
Research:
Strachan Corporate did some research a few months ago. Put their current resource at about $30/oz.
http://www.dragonmountain.com.au/dragonmountain/Documents/Brokers/100921%20Strachan%20Corporate%20Research%20Documen t.pdf
He noted the takeover interest, the potential for JORC to upgraded substantially, and the premium that a takeover would attract.
Strachan also noted that almost all the ore at Liba project is above the 1g/t cutoff.
This looks like a very good under the radar takeover play, the downside risk is the impact to sp if the potential takeover-ee walks away, but I think this is sufficiently mitigated by the heavily undervalued sp and potential upside at DMG's various projects, particularly Jinshan.
Currently the subject of a conditional takeover offer at a 50% premium to the current price....One of the lowest price per ounces goldie going around, and very much under the radar (found this one by trawling through low cap goldies with decent resources)
I hold a couple, wish I had a hell of a lot more but am fully invested at the moment. I'll pick up some more at some stage in the near future if I can
Market cap: $80million
JORC gold resource: 2.8 million ounces (Liba project) - Infill drilling has completed recently and an upgrade to this JORC is pending
Currently exploring at Jinshan (current resource expected to stand at around 650k with many targets untested) but expectations are that it will ultimately be larger than Liba.
Latest drilling (as of the last few days) has expanded strike by 300metres.
This picture should give you an idea of what they're onto at Jinshan...
3075
Takeover info:
Non-binding conditional takeover that is subject to: due diligence, FIRB approval and investor reaching agreement with minority stakeholders in DMG projects.
Seems relatively straight forward to me, but looks like they can walk away at anytime. There were several other parties showing (unsolicited) interest at the time also.
Research:
Strachan Corporate did some research a few months ago. Put their current resource at about $30/oz.
http://www.dragonmountain.com.au/dragonmountain/Documents/Brokers/100921%20Strachan%20Corporate%20Research%20Documen t.pdf
He noted the takeover interest, the potential for JORC to upgraded substantially, and the premium that a takeover would attract.
Strachan also noted that almost all the ore at Liba project is above the 1g/t cutoff.
This looks like a very good under the radar takeover play, the downside risk is the impact to sp if the potential takeover-ee walks away, but I think this is sufficiently mitigated by the heavily undervalued sp and potential upside at DMG's various projects, particularly Jinshan.