EGAO is a proxy EGA at the moment. Why pay 29c for EGA, when you can buy EGA(O) for 28c (converted)?
MC is around $40mill fully diluted. Although that would give them $14.42mill in cash, so EV closer to $26mill.
From the trading that has been going on, I get the feeling the market is happy valuing EGA at that $40mill fully diluted price. The option dilution has been priced in IMO.
What hasn't been priced in is any success on the parallel shares nor any project de-risking around DFS /financing. In other words, the negative aspects of dilution are being priced in, but not any of the imminent positives. It's a strange dynamic that will be resolved soon. USD Gold price is looking very supportive. Still a great time to be building a gold mine in WA.
EGA Price at posting:
29.0¢ Sentiment: Buy Disclosure: Held
