Which US presidential candidate does gold prefer?
Gold loves chaos and should be hitting new highs, especially with inflation coming down and with it, two rate cuts likely before year’s end.
Investment Highlights
• The company has entered into terms for a gold prepayment agreement in the amount of US$24.25 million. The US$24.25 million will be repaid by the delivery of 36,800 ounces of gold over a 40 month period from first gold production.
• The deal allows company to minimize dilution from project related equity financing and avoid interest payments associated with traditional bank debt financing.
• The company anticipates the first ore to be placed on the leach pad in December 2010, with gold recovery starting in January of 2011. Production of 50,000 ounces of gold is projected for year one.
• On May 20, 2010, the company announced it has closed the first tranche of a private placement by issuing 10.10 million shares (at $0.75 per share) for gross proceeds of $7.51 million.
• We have maintained our BUY rating and fair value.
Click here to see rest of article
