Red, Goldstone is a possibility but while they have a 43-101 resource, they don't seem to be as close to a mine as what Sage seems to be looking for.
this is what I can't figure out, the type of property SGX management wants to get would be several times more valuable than Sage's current value. Goldstone is a $65 million company, Sage is a $10 million company. ... so it begs the question who is taking over who?
I can't figure out how Sage could possibly buy a property such as one they are looking for without some serious dillution. If the merged company is to keep the name Sage it would look much more like a reverse takeover than a merger.
So what is really needed to buy a property ... being a $10 million company, it would cost them at least that much to acquire a million ounce gold resource (and that's a cheap one) ... 2 to 1 dillution. If they are acquiring a whole company the market cap will probably be higher than 2 to 1 plus their cash position.... then since there would be more than 500k shares outstanding there would be a consolidation (maybe 10-1)combined with a large equity financing.
This may or not be a bad thing as you never know what the future of any property prospects are. Having said that, the value current shareholders are clinging onto with existing properties will be virtually eliminated and they will end up with a much smaller piece of a much bigger pie. Again, this is not necessarily a bad thing in the long term, But it leaves way to many unknowns and unanswered questions that leaves existing shareholders vulnerable to things they probably haven't even thought about.
juniors reinvent themselves almost daily. It wasn't that long ago that cloudbreak resources was a moly explorer ... now they are a coal explorer. What will Sage be next year ... maybe out of the BG area altogether? My suggestion to everyone is if you want to stay in Sage, you better believe in Management because right now with the state of Sage (PL results notwithstanding) Management is the best asset they have ... if you think they can increase value from here in the short term then stay.
just my 2 cents ... and I hope that everything works out in the end.
