Here comes Zijin

Here comes Zijin.

There strategy looks quite clear, start small by taking KMC, then take BAB, then take out Pheonix next, and then follow this with Excelsior.

The Chinese are very patient, and exceptionally voracious for Gold - they just can't get enough, and as opposed to Africa right now, Australia is a very stable jurisdiction.

The falling Gold price has been a boom for them, literally a dream come true. They are obsessed with the stuff.

As far as I read the announcement, Zijin are simply transferring shares from one of their companies to another. In this instance. It looks like Gold Mountain (HK) is the seller, and Norton is the buyer. Gold Mountain is a wholly owned subsidiary of Zijin, and Norton is approximately 85% owned by Zijin, so as you can see, they are effectively buying and selling the shares to themselves.

One thing is likely though, as long at Norton is prowling with intent for more influence in Pheonix, the price is probably not going to rise much, Zijin might not see any benefit in a rising PXG share price.

Interesting times ahead for Pheonix shareholders, and interesting to see how the board handles things going forward.

Good luck to all the holders. I used to be one, because PXG has always been a great little company. I also used to own shares in Norton, KMC and BAB. If Norton's strategy plays out, they could grow into a 400k/oz annual producer within a couple of years, but will there share price ever reflect it?

Gw