It is great to see Mahdia Gold Corp shaping up in all aspects to become the giant it is destined to be. From all angles the foundation of this company is being formed.
It has only been about one year since we have acquired the world class Omai mine. We now have three amazing properties in Omai, White Creek and Tiger River. Based on recent news releases we will also be adding a massive land package that will contain all the land abutting the Omai mine. The company is hard at work not only making this one of the biggest gold companies in the area but also one of the biggest Producers in South America.
With the addition of John Reynolds, father of the CEO of Canaccord, it becomes visible we have instant credibility and backing from one of the biggest firms in Canada. Add this together with the deep political connections of CEO, Al Zaakir, and you have yourself a management that is deeply routed not only in Guyana but also throughout the investment world.
With over 350,000 ounces of gold produced out of the Omai in 2001 it is evident that the land in and around here is laden with gold. Production ceased on the property due to low gold prices in 2005 with millions of ounces left behind by the former producer Cambior. To our benefit a massive ore pile was also left behind.
Stockpile left behind(approximately 50M tonnes)
This stockpile is of tremendous importance to MGD going forward. Estimates are that it contains upwards of 50,000,000 tons, of which could yield us in and around 1 Million ounces of gold alone. With current gold prices and including costs this could create over 750 Million dollars or more in cash flow for the company to use towards developing not only the OMAI MINE but also for further exploration on the other properties as well as land acquisitions. Further dilution to the company could thus be kept at a minimal.
The company is set to release the geological report done by the industry leader AMEC. With over 60,000 meters of historical drilling done by Cambior as well as former owners there is no doubt the company will have a very good idea of the land. The upcoming drilling program will be heavily based off of this and will help us in directing the drill at areas that we know are already flush with gold. The drill program is set to begin any day now. It is also important to not that AMEC is conducting all environmental tests currently on the property as well.
The company has recently hired ALOE Financial to help bring the company to compliance for a TSX Venture listing and closely followed by a hopeful TSX listing.
The current private placement set to close on March 29, 2012 is already said to be filled with big Institutional investors as well as accredited investors. Mine site tours in the last few weeks consisted of many big players visiting the mine. The following we soon could have with bigger players in the game will be tremendous. With the closing of this pp the company will be fully funded going forward. IT is said this private placement will net us over 8M dollars. We also have 45 cent warrants that will be converted from the previous pp if the 10 days average is over 65 cents and of course the 60 cent warrants from this pp that will be forced to convert when we pass 72 cents for more than ten days. The company will have in and around 150M outstanding shares. This is paltry considering there is already 100M worth of infrastructure from former owners already in place and in our possession. We also have the previously mentioned massive stockpile that is sitting on the surface and ready to be milled.
With TSX Venture listing around the corner, a 50M ton stockpile worth potentially up to and above 1 Billion dollars, the Omai mine, White Creek Property, Tiger River Property and new land packages, Amec Geological report, drilling about to commence any day, a 43101 about to be completed this year, management additions of credibility, large institutional investors and accredited investors supposedly now on board, along with the forecasting that gold will be very strong in the second half of 2012 we can look forward to a successful growth of MGD. As the stock is now already rising it seems March 29th, the closing of the pp is but only turning the first page on what will be the next big gold story in South America.