Gold/Mining/Energy : GoldQuest Mining Corp gqc.v

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To: LoneClone who wrote (132)2/21/2017 2:35:40 PM
From: marcos1 Recommendation

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ugd.v - Unigold taking a hit on friday's news of tenure difficulties ... which according to Eric Coffin here, are largely of their own making [and shouldn't have any knock-on effect on Goldquest] -

' @HRA-Coffin I have my own reasons for looking into the $UGD situation obviously, namely $GQC and $PRG. At this stage I don't think the Unigold situation tells us anything negative in general Dominican level. I won't bore you with the history but, for a variety of reasons, $UGD has total concession holdings that are way, way over the 30,000 ha per company limit. This isn't news, nor is it news that the DR authorities wanted Unigold to do something about this. There was a flurry of option deals a few years ago with associated companies that were an attempt to deal with this problem. Most of those projects ultimately came back to $UGD so they had the problem dumped in their lap again. The concession holdings may not be the only problem but it's certainly not helping so you may see $UGD drop some of the less interesting concessions to bring their total holdings down a bit. It also sounds to me like they started the renewal process only a few months ago, which is a lot later than they should have. The DR is SLOW when it comes to this stuff which more experienced hands take into account. If the intent is to renew the concession after letting the Unigold guys sweat a bit then the ministry won't let anyone else overstake it or anything and the tenure will be fine in the long run. Unigold may be able to get some backing from GoldQuest and Precipitate, or at least some sympathy though, frankly, they don't deserve it. Every time I have seen them do a presentation recently they have dumped on both $GQC and $PRG which is ridiculous given GoldQuest's project is far superior for a number of reasons. Why Unigold management would think crapping on their neighbours is in any way a smart strategy is beyond me, but that is what they were doing. It's quite possible this will still work out but if it doesn't, $UGD should not be surprised if the only reaction they get, especially from GoldQuest is along the lines of "Oh well. Sucks to be you".


from #index, 18 Feb 2017, 12:41 '

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