Ann: EnviroGold Appoints Sponsor for Proposed TSX, page-5

re: Ann: EnviroGold Appoints Sponsor for Prop... Market obviously abit taken back by the delay in TSX listing.

I was at first, but upon closer examination it is a positive outcome.


On March 24 when the TSX listing was first announced the share price was 12 cents and the options were 3 cents out of the money.

I think some of us speculated that any placement (30 to 40 million shares) on TSX listing would hopefully be at a premium and match the option exercise price of 15 cents.
At 15 cents this would have raised $6 million.

EVG had 503 million listed shares and 206 million listed options


Come May 25 and the update: the share price is 18 cents and the options are in the money by 3 cents.

Since March 24, 17 million option have been converted to shares and a further placement of 7 million shares to Dubai based Jubilee Company has taken place, raising $3.6 million of the initial 6 mil proposed in the first plan of listing on the TSX

EVG now has 528 million listed shares and 189 million listed options


To date our equity has only been diluted by the 7 million new placement to Jubilee.


The other big positive is that in March we hoped, and it was still possible that the 206 million options would be in the money by December 11, and we looked forward to the possible conversion to shares

Now in May, 17 million of those options have already been exercised, and it is most likely that the remaining 189 million will remain in the money and be exercised.


In Sept 2010 the share were selling at 4 cents.
In March 2011 the shares were selling at 12 cents
In May 2011 the shares are 17.5 to 18.5 cents
In December 2001 30 cents would not be out of the question.


Why?
Well since Sept 2010
Finance has been approved
Construction is on schedule and below budget
Production start up in 6 to 7 months.
50% of first 4 years production locked in at $1358 (positive and negative)
Current gold and silver price is high and going higher, with the gold price showing no sign of any blow off top.
Gold equities (EVG or others) show no sign of any frenzied action
Further exploration upside is being advanced


All this with the TSX listing to come.

Short term who knows.
End of financial year may put pressure on the price, but not necessarily.


EVG like any stock has risks, but that is balanced with enormous potential rewards.