Jun. 7 at 4:10 PM
$GGAZF $GORO $SMOFF
Potential valuation of GoldGroup Mining's Prieto Mine surface rights
Using currently disclosed gold production figures in GGAZF's financial reports and typical mining transaction metrics, a potential range of
$10-
$30 million, with a low of a cooperative lease/royalty solution and a high of a strategic-control situation where continued mine operations depend on reaching an agreement between Sonoro Gold and Gold Group Mining.
The surface rigth issue can be a legal problem if GGAZF does not disclose this issue before the merger. If they do not, the bargaining value of Sonoro's position could be much higher than a conventional surface-rights appraisal. Considering SMOFF's market cap around
$55-
$60 million, the eventual agreement with GGAZF could be a huge positive for Sonoro and a negative surprise to GGAZF and GORO shareholders.
