Coral Gold (TSXV: CLH) is currently sitting on a HUGE cash position of CAD$18.21 million and with only 47.7 million shares outstanding, CLH has $0.382 per share in cash! At CLH's current share price of $0.395 per share, its enterprise value is only CAD$620,000!
This past Wednesday, Coral Gold approved a share buyback to occur over the next 12 months of up to 2,950,485 common shares, which is equal to 10% of its public float!
Earlier this year, Barrick Gold and Newmont Mining combined their Nevada gold mines into a joint venture company called Nevada Gold Mines (61.5% owned by Barrick Gold and 38.5% owned by Newmont) to create the single largest gold-producing complex in the world. In 2018, the operations of Nevada Gold Mines produced 4.1 MILLION oz of gold, more than double the world's next largest mining complex and equal to 60.74% of all U.S. gold production!
Last month, US Secretary of the Interior David Bernhardt visited Nevada Gold Mines' Cortez Mine where he was hosted by Nevada Gold Mines’ executive managing director Greg Walker. Click here to read Barrick Gold's press release about his visit!
According to Walker, Nevada Gold Mines is "destined to be one of the world’s greatest gold mining operations and planned to mine several world-class projects in its immediate and longer-term future. These include newly identified deposits at Goldrush, Robertson and perhaps Fourmile, as well as the expansion of the existing ore bodies at Cortez Hills, Pipeline and other locations. These growth projects will continue to provide a broad range of employment opportunities for years to come."
Barrick acquired Robertson from CLH in mid-2017 and CLH received a sliding-scale NSR royalty worth 1.5% at current gold prices and will be worth 2.25% once gold surpasses $2,000 per oz!
If Robertson doesn't enter production by December 31, 2024, on January 1, 2025 Nevada Gold Mines MUST begin paying CLH an annual cash royalty payment of USD$500,000 or CAD$665,600 until the mine enters production (for up to 10 years). This means CLH is guaranteed to AT LEAST receive another CAD$6,656,000 or $0.14 per share in cash from Nevada Gold Mines!
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