Why Augusta Gold (TSX: G) Will Be Acquired for $3-$6 Per Share

If you want to look at things in a very simplistic way...

Augusta Gold (TSX: G) and its predecessor company Bullfrog Gold spent a total of US$55 million to successfully consolidate the Bullfrog Gold District... with Augusta acquiring the half of the district it didn't own from Barrick four years ago when gold was only $1,800 per oz in late-2020. Augusta Gold (TSX: G) spent US$50 million to acquire the fully permitted Reward Gold Project located a few miles away from the Bullfrog Gold District back when gold was only $1,650 per oz in mid-2022. They have consolidated a total of 1.92 million oz of gold resources in the area just outside of Beatty, Nevada that is about to be developed by AngloGold Ashanti (AU).

Borealis Mining (TSXV: BOGO) is acquiring Gold Bull Resources (TSXV: GBRC) and its Sandman Gold Project at a rock-bottom price... paying GBRC shareholders 0.93 share of BOGO for each GBRC share owned. With BOGO at $0.67 per share, GBRC is being acquired for $0.6231 per share. After the exercise of in-the-money warrants, GBRC will have 19.908 million shares outstanding valuing the company at CAD$12.405 million or US$8.63 million.

GBRC paid Newmont US$4 million cash for the Sandman Gold Project in 2020. With gold prices up significantly since then the equally rock-bottom price that BOGO is paying today of US$8.63 million equals a 115.75% increase in price.

So, if Augusta Gold (TSX: G) and its predecessor company Bullfrog Gold spent a total of US$105 million consolidating the Bullfrog Gold District and adjacent fully permitted Reward Gold Project in an area that is about to be developed... these assets are worth at least 115.75% more than what they paid due to huge increases in the price of gold. A 115.75% increase comes out to US$226.54 million minus US$30 million debt owed to the company's Executive Chairman and CEO equals US$196.54 million or CAD$282.52 million divided by 85,929,753 shares outstanding equals $3.29 per share.

However, with Augusta Gold (TSX: G) it is important to note that one year after they finished consolidating the Bullfrog Gold District, AngloGold Ashanti (AU) acquired North Bullfrog at a cost of US$450 million. And, literally two months after Augusta Gold (TSX: G) acquired Reward, AU acquired the directly adjacent Sterling at a cost of US$150 million.

If Augusta Gold (TSX: G) was willing to accept $3 per share the deal would have already been completed weeks ago. It is obviously worth closer to $6 per share.

BOGO by the way is making a very good acquisition with Sandman. We don't know of anything that would be better for BOGO to acquire.

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. NIA has received compensation from BOGO of US$100,000 cash for a twelve-month marketing contract. This message is meant for informational and educational purposes only and does not provide investment advice.