Agoracom: Small Cap Investment - Alio Gold - The Gold Report Interview with Peter Grandich (02/11/11)

Gold Production in Mexico

Targeting 2013 annual production of 118,000 ounces of gold

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The Gold Report Interview with Peter Grandich (02/11/11)

posted on Feb 11, 2011 03:30PM

Related Quotes
The Gold Report Interview with Peter Grandich (02/11/11)

"I think Timmins Gold is a very undervalued situation with my prejudice noted. It's been involved in a potential takeover, and I think that has prevented people from rerating its value based on some of the great drill results, expansion of production and potential new projects. . .It wouldn't even surprise me that Timmins becomes a target of a larger producer, particularly one in Mexico, because it has just so greatly advanced its current production mines and has demonstrated large-scale exploration skill potential on several projects."

Also, audio interview (18:22 mark) :

http://corporateinterviews.com/interviews/AFewMinutesWithPeter10Feb2011/grandich10FEB2011.html

Stuart McDougall, Jennings Capital Inc. (02/11/11)

"This morning, Timmins announced that it has filed a preliminary registration statement with the SEC to acquire all of the outstanding shares of Capital Gold. Timmins continues to offer 2.27 shares for every share of Capital Gold vs. Gammon's friendly offer of 0.5209/share and US
.79 of cash. The exchange offer will commence after Timmins mails the necessary documents to CGC shareholders.

In an interesting turn of events, Timmins also has filed a consent solicitation statement to remove and replace Capital Gold's current board of directors. If accepted, TMM intends to replace the board with independent directors, none of whom are affiliated with either company. Additionally, TMM has filed a preliminary proxy statement in connection with Capital Gold's March 18, 2011 special meeting of shareholders, recommending that all matters surrounding the sale of CGC to GAM be rejected.

Although the delta between the offers has narrowed to ~4%, we continue to recommend the TMM offer because of what we view as better long-term upside. The proximity of the two companies' flagship operations, San Francisco and El Chanate, also offer greater operational synergies than those provided by Gammon's Ocampo mine, which is located in the Sierra Madres."