TYHEE GOLD CORP

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Message: The demise of TDC..... or not ???

I read T-Man’s comments on May 14th with great interest.  I have been mostly a lurker on this site for about 9-years and in that time, I’ve accumulated 1.5M shares of Tyhee, and I am pissed.  Is there no one associated with this project who is looking out for the best interests of the shareholders?

As I read things, GoldMining, Inc. is getting 100% of the assets of Tyhee for 4M shares of their stock, which was valued at $1.23 US per share on the day of the announcement.  That is $4.92M for an asset that was listed at $62.3M less than 3-years ago.  That’s less than 8-cents on the dollar, which is outrageous and can only be classified as a fire-sale. 

I’ll admit that asset values can be hard to quantify, but in Tyhee’s case it basically boils down to the value of the gold reserves.  So, what is an ounce of gold in the ground really worth? 

I came across an article by Mickey Fulp, The Mercenary Geologist that I thought might be of interest to the group.  I apologize if this was posted earlier, it’s from 2015 but the numbers match up pretty well with what we’re seeing in the gold market today.

http://www.kitco.com/commentaries/2015-06-03/The-Real-Value-of-Gold-in-the-Ground.html

The principals analyzed 253 take-overs in the gold sector from 1990-2013 to determine the value range for an ounce of gold in-the-ground.  They came up with a median price of $34 per ounce for feasibility stage and developmental projects.  Also, the total ounces they used in their study included all categories of 43-101 qualified resource estimates: measured, indicated, and inferred resources.

Just taking into consideration Tyhee’s proven and probable ounces of 1.334M and using the sale price of $4.92M puts Tyhee’s value at $3.69 per ounce in the ground.  That’s 10.8-cents on the dollar without taking into consideration the measured and indicated ounces.  I would like to think that Tyhee’s project is at least an average resource given the nature of the deposit, its location in a mining friendly area, and the additional potential that the blue sky opportunities represent.

This sale is a horrible deal for all parties involved, except GoldMining, Inc.  I’m on board with T-Man that we should explore a class action suit and would suggest that we contact the lawyers who handled Santa Fe’s suit, as they have a winning record. 

If we put together the members of this board and threw in $100 each I’d like to think we could buy enough time to get a case filed and try to stop this sale.  I see no evidence that anybody is working on our behalf…not Bowra Group, not Red-Cloud, not Tyhee’s management nor the Board of Directors.  We need to push for a fair sale price that provides the shareholders at least a partial return on our investment, even if that amounts to only 5 or 6-cents a share.  That would seem to be well within the normal valuation range that the market has historically placed on projects like the Yellowknife Gold Project.

 

JGerman

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