Eike Batista's Next Target?

Keep an eye on Galway Resources (GWY).  They are now 12 days overdue for their 43-101.  I have confirmation that even though it is late it will be released sometime in April.
This is the property that sits within a stones throw of Ventana Gold (now owned by Eike Batista)Galway owns  land fractions as well that sits in the middle of Eike's property.  Take a look at these fractions, if Eike doesn't do a deal he'll have an adventure trying to run a mine around galway's claims.
Eike is closing a 2 billion dollar cash invesment by Mubadala on April 20th.  Maybe this provides the cash he needs for some M&A? 
It is my thoughts (and others), that Eike will likely take a run at Galway sometime in 2012.  Galway is very interesting in that they have 3 drills turning at the property that is about to come out with the 43-101 (California), and they haven't released any drill results from it in almost 5 months! 
The last release we received from their California property was that "Drilling is continuing with 3 drills now focusing on expanding the forthcoming  resource, drilling in the vicinity of the best previous results".  They literally haven't said anything about California in over 4 months.  No updates, not even an update on the 43-101.  The question then becomes, why would they be so quiet when they are drilling around their best holes, and the release of their 43-101?  My thoughts are that we will get that answer in due course. 
Galway is also well financed as they have over $20mm sitting in the bank and I got confirmation from them that they aren't looking for any more cash any time soon.  The share structure is also solid as they only have about a million warrants left at $1, and about 8 million left at $1.50.  That's it regarding the warrants.  Currently the price is $1.43.
Valuation is always a key concern and to give you an idea, Ventana was bought by Eike for over $400/inferred ounce in their 43-101 (9 days after their 43-101 was released).  I estimate that GWY will prove up at least 1.5mm inferred ounces in their 43-101 (cut-off grade 2g/tonne, average grade at about 3), and if that is the case then Galway is currently trading at $130/ounce.  This puts 0 value for their $20mm cash, and 0 value for their Vetas property.  Galway owns 80% of their California property, while Ventana owned 100% before Eike took them over.  However, gold is 20% higher than when Ventana did their deal, and also Galway owns that fractional land within Eike's claim.  Vetas (their other main gold property), might even end up being better than California as they also sit literally within a stones throw of CBJ's glory hole that brought in Ross Beaty for $11mm late in 2011.
I have been wrong plenty in the past, but if I am wrong with this one I quit!  :).  Do your DD as always.  Just something to keep an eye on for 2012.

Community Talk

Re: Eike Batista's Next Target?

Hey thinker,

As you know, It all comes down to valuation.  Ventana went for over $400/inferred ounce while Galway is currently trading at well under $100 when you strip out their cash and other assets.  It seems like too much of a coincidence that Batista is closing 2 billion dollars to his bank account on Friday, and that is right around the time that GWY is coming out with their 43-101 from the property that is next door to his, and which own a bunch of annoying land fractions that goes right through his mine.  You are correct, patience is needed with this gold jrs, but DD is rewarded as long as you stick around long enough to reap what you have harvested through your research.

Re: Eike Batista's Next Target?

Thanks Peter, as a shareholder in Galway I hope your predictions prove out. It is interesting how people go wild on some stocks, (Ventana would be a good example) which then go dormant for years so anyone wanting to make money in the junior mining sector better learn the development cycle and become a good market timer. I have guessed a few wrong myself but I am not giving up (and doubt that you will) once the market turns rational again there is going to be a lot of money made in the junior mining sector, it just takes a lot of PATIENCE!