Just to emphasize a few points about this news today, Sachigo Lake is a non-core asset, and I doubt any value whatsoever was built into the share price for our interest. The company controls several good prospects that are on the front burner, including the Guyana properties which have the potential for world-class gold deposits. So it makes sense to trim the roster and focus more on the best projects.
By vending off our remaining minority interest SMH will no longer have any payment obligations on them, but we are still leveraged to upside through the retained NSR, and the share ownership in MacDonald as part of the deal. And we get the cash, which is a small payment, but still it represents a net gain on the original acquisition costs for the project, and in this market any cash is a good deal.
SMH is now a little bit more focused and has a slightly stronger balance sheet.
cheers!
Mike Kachanovsky
IR Consultant
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David gives an update state-of-the-union presentation to investors
