Not entirely unexpected, High Desert Gold (HDG.V) acquired the remaining 17.5% of the Gold Springs Project from Pilot Gold (PLG.TO). This is the acquisition we’ve been waiting for a while as we believe a 100% ownership in the project will make it easier for the market to put a value on the property.
We’ve got the impression High Desert Gold acquired the remaining ownership on the cheap, as no cash payment was needed and less than 6.1M shares had to be issued to acquire Pilot Gold’s interest. This translates into a value of just $606,000 for 17.5% of the property and thus less than $3.5M for the entire property and we strongly believe the Gold Springs property is worth a lot more than that as the company is aggressively expanding the current mineralized zones.
High Desert Gold made a good move to consolidate the ownership and we’re looking forward to see more drill results soon.
> Click here to read the press release
Disclosure: The author holds a long position in High Desert Gold. High Desert Gold is a sponsor of the website. Please see our disclaimer for current positions.
