Just go to marketwire and read the Takara news release for November 13. Then go to the Takara website and view their July presentation for the Tartan Lake gold mine. Then go to the St Eugene website and view their presentation for the Tartan Lake gold mine. SEM is raising the money for the rehabilitation of the former producing mine. SEM and TKK have effectively merged but the two companies will remain as separate entities. Tartan Lake is supposed to produce about 18,000 ozs. of gold per year and the cash flow will start in Q2 of 2010. TKK's share of the cash flow will be used in part to advance the Guyana assets forward and move the Tassawini gold project into production down the road. Some of this cash flow will advance the Amisk gold deposit and that ore will be trucked to the Tartan Lake gold mill for processing. That is supposed to bring total production at Tartan Lake to 48,000 ozs. per year with the inclusion of Project X. VIT will own 56% of TKK's shares. It seems that in time VIT will monetize some portion of these shares by reducing their position to 19%. So, effectively, about 37% of the TKK shares will be monetized. It seems apparent that TKK will likely be buying back their own shares from VIT, piece by piece and using their own cash flow to do it. The markets will have to decide whether this deal adds any value to VIT and by how much. I have absolutely no idea at this time. We'll just have to wait and see how the pieces fall into place.
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