GFG Hits a Hole in One
Some times I get it almost exactly right in my forecasts. I have written a number of times about Rattlesnake Hills and GFG Resources. The latest was just over a month ago. I love getting it right. There was a ton of opportunity then and for those investors willing to take a chance, they are going to be richly rewarded.
In it I said,
On September 11th GFG made an interesting announcement where Newcrest is doing an option on Rattlesnake Hills. The terms are a little confusing to me and I suspect to investors but go through the press release because it’s giant news for GFG. Essentially it means Newcrest can get 75% of Rattlesnake for about $100 million over years. That values the project at over $133 million and GFG will retain 25%. With a market cap of about $16 million USD right now, GFG is a screaming buy.
When Evolving Gold first did the deal many years ago with Agnico Eagle I was thrilled. With a project this large, you need a well run company with deep pockets and Agnico qualified on both counts. Bruce Duncan was an idiot to queer that deal. But adult management at GFG has done an even better deal with Newcrest and they are probably the best company in the world to advance Rattlesnake. Both companies have my congratulations for a deal well done.
GFG can now focus on their Ontario projects. GFG announced a major exploration program earlier this year including an 8000-meter drill program. Drilling starts this month. Look for lots of news coming out starting in a couple of months on both projects.
The company does an incredible job of communicating and has already updated their presentation to reflect the deal with Newcrest. Read it.
GFG is an advertiser and I own shares. Do your own due diligence.