Cluff Gold plc, the dual AIM/TSX listed West African focused gold mining company, is pleased to announce that it has signed a Memorandum of Understanding for a long term strategic partnership with Samsung C&T Corporation (“Samsung”). This alliance commences with an unhedged US$20m facility to provide additional funding to Cluff Gold to further the development of its portfolio of assets. The Memorandum of Understanding provides a general framework for the potential long term funding of Baomahun and other development opportunities.
The initial facility forms part of a wider strategic alliance between Cluff Gold and Samsung which is a global trading company. Cluff Gold has a producing mine, Kalsaka in Burkina Faso, and a strong pipeline of development assets which is expected to generate a long term production profile. Through this long term partnership Samsung will have access to a reliable supply of gold bullion, underpinned by the Company’s strong operational and management team whilst Cluff Gold will benefit from Samsung’s financial support. The relationship is expected to result in a significant financing in Cluff Gold’s Baomahun project, subject to the outcome of the feasibility study, together with an ongoing commitment to jointly assess other opportunities in the region.
Dear buyers of Cluff Gold on the TSX, you’re throwing money away
September 20, 2012 at 7:27 am
As of this posting, Cluff Gold last traded 500 shares at C$2.75, up 62% for the day on no news and a mere 3k shares traded. We’ve been receiving some mails about this “game-changing” news and noticed the source to be Jim Sinclair:
A Game Changer For Gold September 18, 2012
This is a major game changer. It has taken place in a West African gold miner. It speaks to certain African countries as excellent investments. It underscores that prediction of 12 years ago.
It screams at undervaluation. It is the recognition that gold mines mine money. This is a recognition of the dwindling supply side of gold. This is a recognition that gold is the only Honest Money. This is a recognition of gold’s role in high tech.
The end of the bear market inflicted by the hedges on gold shares is absolutely over. The shorts in good gold shares after today are self destructively insane.
This is it for good gold shares. The long bull phase in gold shares starts now.
Funny thing is that the guys over in London continue to trade rationally in Cluff Gold, where an average of about 700,000 shares exchange hands daily. But in Toronto where average traded volume is under 3,000 and it isn’t uncommon for Cluff to go weeks without trading, fools are rushing in. Consider that Cluff closed at 87 pence in London today, up a mere 0.2 percent. This translates to C$1.38 and therefore C$2.75 marks a whopping 100% disconnect! The bid-ask alone is C$2.30 to C$2.50. I very much wish I owned shares to sell into this madness.