Ann: WAF hits extensive visible gold in 1km hole at M1 South, page-62

@bastowmichael

Replying to your question on the other thread here since a few of us are talking about the same things.

Good drilling results at depth are a game changer but at this point the market is too asleep to care.

My view hasn’t changed for 18 months that this project will eventually get taken over. Logically if it were to happen I think the suitor would want to make an offer prior to debt financing being signed off. That could make it any day now. We also know that WAF is redoing the NPV estimate for the project by Q1. Often when an offer comes for a project it is before a major revision to a feasibility study or mining reserve. The recent takeover of Dalradian happened just prior to a revised feasibility study. This make sense because any revised feasibility should in theory set fair value in a takeover discussion.

All the while we have B2 churning out cashflow and wanting a new project that in almost every respect matches Sanbrado, even before considering the strong synergy from Toega. Some other party coming out to make an offer is also not out of the question. Remember our chairman has negotiated multiple deals in West Africa, the last being with B2Gold! (from memory the Papillon deal was announced just prior to the DFS for Fekola).

Even if a takeover doesn’t happen the team assembled by WAF looks extremely high quality for a junior company. Good mix on the board, in the development team and at the construction contractor. They can bring it into production.

Just got to be patient here and stick to the fundamentals. Gold price is also reasonably resilient of late and coming into a period of seasonal strength usually from mid December.