Rainy River comparison

First Mining Gold

First Mining is a mineral property holding company whose principal business activity is to acquire high quality mineral assets with a focus in the Americas. The Company currently holds a portfolio of 21 mineral assets in Canada, Mexico and the U.S.A.

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Rainy River comparison

posted on Mar 20, 2011 06:27PM

Rainy River is sporting a $1B market cap on 90M shares f/d.

They have 6.5M ounces (3.42M oz. ind. + 3.17M oz. inf.).

GCU has 118M shares f/d and a 6.5M oz. deposit would equate to $8.48/share.

But let´s say the need another $10M for drilling to get to this stage of 6.5M oz., that would add roughly 2.8M shares at $ 3.50.

Let´s be generous and add 7M shares for $ 25M, to be on the safe side for a few drilling phases over and above the NI 43-101 requirements.

That would equate to $8/share (for 6.5M oz. and 125M shares f/d).

I don´t think that is too far fetched, because we would not even get close to what Mr. Hennigh is expecting.

Again, even a $3 price tag seems quite favourable in that picture, doesn´t it ?