I am not sure if this is a good deal or a bad one. I know of only one company which gave the results of a sale of their main asset back to their shareholders (mainly directors). They went broke soon after when their other mine ran out of reserves.
Having $40m in the bank means they can snap up a number of very cheap companies with advanced gold projects or even mines.
I reviewed CHZ a number of times and talked to the company at various mining/investor conferences when I was a business development manager for a number of UK miners. I liked the deposit, good grades, good metallurgy, reasonable strip ratio, but the geology was complex. They also needed at least $88m (and probably more), which is not easy to come by these days. They were down to $3m at EO March.
Wasn't the PFS due out in June? I would have liked to see the results.
CHZ Price at posting:
14.5¢ Sentiment: None Disclosure: Not Held
