"the Company announced that it had executed a sale contract for its Akoase Gold Project for an overall transaction value of US$10 million. The purchaser, Akoase Resources Limited(ARL) is owned by the Chinese party that controls Akroma Gold Limited, the owner of the Sian gold project located 12kms from Akoase."
The Chinese party is : Xiaocheng Ghana Electronic limited, which is 100% controlled by:
Beijing Fuxing Xiaocheng Electronic Technology Stock Co. Ltd (FXXC)current listing in the Growth Enterprise Market on the Shenzhen Stock Exchange under Stock Code 3001390.
FXXC's current market capital is AUD$900 million as at 26,Jan 2016. (normally over AUD$1b, China's market dropped a lot recently.)
My comments:
As the real buyer's MC is AUD$900Million,
as they already paid nearly USD$2million, (non refundable)
as gold price is so strong,
as Akoase Gold project is an advanced project
as no one would like to lose USD$2 million, which is nearly 1/3 of the rest USD$6m for 100% of the project.
after checking the buyer's background, I concluded: Now I AM 100% SURE THAT THE DEAL WILL GO AHEAD, AND VKA WILL RECEIVE THE REMAINING USD$6M WHICH IS AUD$8.5 MILLION.
AUD$8.5 MILLION / 250MSHARES = 3.5C CASH PER SHARE, PLUS 1C CASH BACKING NOW (after received the USD$330k soon and I work out circa USD200k already received after 31,Dec 2016, so not in QR)
VKA will have 4.5c cash backing soon.
Plus 1,
“Preparatory work continues for a planned reconnaissance drill program testing a strong gold in soil anomaly located adjacent to the Salman shear zone in the northern part of the West Star prospecting licence.” ---see QR, new drilling will kick off soon, market likes such activities! SP should be up further!
Plus 2, Berkh Uul Coal Project (Mongolia, VKA 100%)
MRAM and the Ministry of Tourism, Green Development and Environment have indicated they are prepared to review the Long Name Law zone boundaries at Berkh Uul on receipt of a formal written submission. This submission is in preparation and will be lodged next quarter with MRAM.
"review" means VKA still have chance to develop this high quality coal project. JORC 35mt and MOU on hand, even if VKA just makes 3-5$/t profits, and only produce 1mt per year, that's huge potential for VKA.
Share price predict :
A: 3.5c+ after USD6m received, which is triple current SP at 1.1c, or 3 baggers!
B: 4.5c-5c once new drilling kicks off. (based on A)
C: 7-9c once Berkh Uul Coal Project back to normal (based on A) which is 8 baggers
(VKA still seeking new project, this is hard to tell at this stage. )
All in all I remain my 10 baggers profits return target for long term, at least 3 baggers in mid term for sure!
