#1 Most Likely Scenario for Augusta Gold (TSX: G): AngloGold Ashanti (AU) acquires the company. AU's CEO has just announced that his primary focus moving forward is "scouring for acquisition targets" claiming there are "a lot of interesting strategic possibilities" for the company. This was announced by AU only days after Augusta Gold published very strong Feasibility Study results for the Reward Gold Project alongside the launch of a Strategic Review Process. Augusta Gold's assets would be highly accretive to AU. This scenario is much more likely to happen than all other scenarios combined.
#2 Most Likely Scenario for Augusta Gold (TSX: G): A mid-sized gold miner acquires the company. Three mid-sized gold miners that immediately come to mind as having recently expressed interest in acquiring and developing oxide gold deposits in Nevada: Calibre Mining (TSX: CXB), Centerra Gold (TSX: CG), and Orla Mining (TSX: OLA). Augusta Gold's Reward Gold Project is the #1 highest quality gold project in Nevada with a newly completed Feasibility Study, strong project economics, and all permits in place for construction. Augusta Gold's Bullfrog Gold Project has more than triple the gold resources of Reward. By one of them outbidding AngloGold Ashanti (AU) and acquiring Augusta Gold today they themselves would become a takeover target of AU in the future.
#3 Most Likely Scenario for Augusta Gold (TSX: G): A large strategic investment from either AngloGold Ashanti (AU) or a mid-sized gold miner to purchase an initial 20% stake in the company plus financing from a bank to fund the construction of the Reward Gold Mine as the existing debt owed to the company's largest long-term shareholder gets simultaneously converted into equity. This scenario would give the strategic investor a better deal as they wouldn't have to pay as large of a premium for a non-controlling stake, but they may end up paying much more on an overall basis if they choose to acquire the rest of the company on a later date.
#4 Most Likely Scenario for Augusta Gold (TSX: G): A sale of the Bullfrog Gold Project to AngloGold Ashanti (AU) for cash alongside the existing debt owed to the company's largest long-term shareholder being converted into equity and funds from the sale of Bullfrog to be used to construct the Reward Gold Mine. This scenario would give AU a greater chance of getting a good deal for a high-quality asset that would improve the project economics of North Bullfrog, but it won't allow them to enter production in Nevada within the next twelve months.
#5 Most Likely Scenario for Augusta Gold (TSX: G): Company sells a 50% stake in the Reward Gold Project to AngloGold Ashanti (AU) and it gets placed into a separate joint venture company where it gets constructed and enters production on a 50/50 basis. Company retains 100% ownership of the Bullfrog Gold Project. Company could consider adding Bullfrog to the joint venture company on a later date if AU agrees to add its North Bullfrog Gold Project.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA's President has purchased 224,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.
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