- Joined
- 6 June 2007
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Hi guys;
An update on a intrguing gold little shell company that might have something on the cards in the near future.
Euro Gold:
319,679,494 shares @ 2.1c = market cap $6.7m.
Top 10 shareholders hold 51% inc:
1. Oxus (Malta) 14%
2. Peter Gunzberg (Chairman) 9%; and
3. Alpha Minerals 6%.
Cash per last app 5B $2.4m.
Dual listing ASX and AIM.
The story so far....
Seems Euro Gold recently sold its only asset, the Saulyak Gold Project in Ukraine, for $2m with a further option to receive $3m if a 'significant regulatory milestone' is met.
Interestingly Euro Gold had tried to sell the project previously to its top shareholder, Oxus (UK listed gold producer and explorer) for 9.16m pounds, but Oxus pulled out of the deal at the last minute claiming that Euro Gold has misled them about Saulyak having a 500k ounce reserve. Euro Gold is currently suing Oxus about this matter.
Potential...?
1. Per their latest set of accounts, Euro Gold is now an investing company. The investment they are looking for is in the natural resource sector, has an 'attractive entry price', will have likely capital market support and will be a single 'significant' project. So given their last project was a gold mine in the Ukraine, I am guessing a gold project in Europe.
2. The current Euro Gold Directors are a stock brocker, an investment banker and a gold miner. The Chairman is of particular interest - Peter Gunzberg. He is currently on the Board of 4 ASX listed entities including Fleetwood Corporation and Strike Oil. He also owns 9% of the company so it is fair to say he is committed to the cause. They also boast Neil McLachlan, an Investment Banker with ties to the UK. Lastly the third director bought up some shares in September 07.
3. Euro Gold is cashed up - $2m - with potentially another $3m to come. It needs a home as Euro has no projects at the moment....so I reckon this should be sooner rather than later.
Summary...
At the moment, this is a shell with money for a project. At a mkt cap of $6.7m less cash ($2m plus $3m option), this has a current enteprise value of $2.7m. The directors are experienced and have said to the market they will use their cash to fund a single project in the 'natural resource sector'. I am betting it is gold and in Europe. This company is also currently listed on both AIM and the ASX and is run by a stock broker and an investment banker so they should be able to find projects and raise capital.
Having said it has potential, it also has a quagmire of risks -
1. it is suing its top shareholder. If the shareholder dumps the shares (43m odd), watch out share price.
2. it has failed in its last project - Saulyak Gold Project in the Ukraine.
3. It has nothing at the moment. It needs to source a project first and it might be a month, 6 months or 3 years before it does so.
4. The $3m is only payable upon the attainment of an 'key regulatory milestone'. I would guess that would be the mining licence.
So an intriguing little gold shell with a couple of connected directors at a time when gold is hot. Wonder what project they will serve up to ASX/AIM? I'll be keeping an eye on it.
Cheers
Bushman
An update on a intrguing gold little shell company that might have something on the cards in the near future.
Euro Gold:
319,679,494 shares @ 2.1c = market cap $6.7m.
Top 10 shareholders hold 51% inc:
1. Oxus (Malta) 14%
2. Peter Gunzberg (Chairman) 9%; and
3. Alpha Minerals 6%.
Cash per last app 5B $2.4m.
Dual listing ASX and AIM.
The story so far....
Seems Euro Gold recently sold its only asset, the Saulyak Gold Project in Ukraine, for $2m with a further option to receive $3m if a 'significant regulatory milestone' is met.
Interestingly Euro Gold had tried to sell the project previously to its top shareholder, Oxus (UK listed gold producer and explorer) for 9.16m pounds, but Oxus pulled out of the deal at the last minute claiming that Euro Gold has misled them about Saulyak having a 500k ounce reserve. Euro Gold is currently suing Oxus about this matter.
Potential...?
1. Per their latest set of accounts, Euro Gold is now an investing company. The investment they are looking for is in the natural resource sector, has an 'attractive entry price', will have likely capital market support and will be a single 'significant' project. So given their last project was a gold mine in the Ukraine, I am guessing a gold project in Europe.
2. The current Euro Gold Directors are a stock brocker, an investment banker and a gold miner. The Chairman is of particular interest - Peter Gunzberg. He is currently on the Board of 4 ASX listed entities including Fleetwood Corporation and Strike Oil. He also owns 9% of the company so it is fair to say he is committed to the cause. They also boast Neil McLachlan, an Investment Banker with ties to the UK. Lastly the third director bought up some shares in September 07.
3. Euro Gold is cashed up - $2m - with potentially another $3m to come. It needs a home as Euro has no projects at the moment....so I reckon this should be sooner rather than later.
Summary...
At the moment, this is a shell with money for a project. At a mkt cap of $6.7m less cash ($2m plus $3m option), this has a current enteprise value of $2.7m. The directors are experienced and have said to the market they will use their cash to fund a single project in the 'natural resource sector'. I am betting it is gold and in Europe. This company is also currently listed on both AIM and the ASX and is run by a stock broker and an investment banker so they should be able to find projects and raise capital.
Having said it has potential, it also has a quagmire of risks -
1. it is suing its top shareholder. If the shareholder dumps the shares (43m odd), watch out share price.
2. it has failed in its last project - Saulyak Gold Project in the Ukraine.
3. It has nothing at the moment. It needs to source a project first and it might be a month, 6 months or 3 years before it does so.
4. The $3m is only payable upon the attainment of an 'key regulatory milestone'. I would guess that would be the mining licence.
So an intriguing little gold shell with a couple of connected directors at a time when gold is hot. Wonder what project they will serve up to ASX/AIM? I'll be keeping an eye on it.
Cheers
Bushman
….. We should have had this on the watchlist after your previous prompting 
