Forced delisting is never good. Never!
Not so fast to judge, there, Ultra. Midwest is the home of #$%$ water beer Bud, Miller, Coors.
They even have the audacity of exporting that #$%$ water all over the country and world.
And people buy it.
THAT is shocking. Truly is.
Drinking someone else's #$%$ water is pretty desperate. ;-)
Ultra, given Animas River (EPA spill) and the dead fish (Interior), what can possibly go wrong with this? After all, LA's finest minds are on it.
Mwb, with all due respect, that's simply not true. $3m buys them zero. Nothing. Read the presser again. They get 10% for each $5m paid. Since $3 is less than $5.... Guess what that means. They write the $3 check today and say a major regulatory problem pops up on say Jan 1 or other major "surprise" which affects the "value" of the property then they have zero to show for it.
I understand the need for future growth due to mine obsolescence. Good bad or indifferent we have Berg etc properties. But more importantly, tc has a bad history of poor development (mm doubled in cost and still need a new crusher). For future growth, an acquisition strategy is better approach until they can demonstrate competence.
And btw, depending on the size of the project, that detailed feasibility study + exps could cost anywhere from say $15M to $25M. Maybe even more if it's a bigger project. We're talking ballpark guesstimates of $30M to $40M (or maybe $50M?) when it's all said and done.
Nothing else to do than post the actual language. Again, $15M for the 30%. In order to get at the 20% more , then they must pay for and complete (with timeline constraints) the Stage 2 Feasibility Study ---- PLUS --- TC must also pay for any necessary expenditures to maintain and advance the project.
"In the event that its Stage 1 Option is fully exercised, Thompson Creek will have a one-time right under a Stage 2 Option to elect to earn an additional 20% ownership interest in the Project (for a total 50% ownership interest). To fulfill its obligations under the Stage 2 Option, Thompson Creek must commit within 120 days after exercising its Stage 1 Option in full, to fund and complete a Feasibility Study for the IKE Project that could serve as the basis for a final decision by a financial institution to finance development of a mining project. This Feasibility Study must be completed within a two-year period, which can be extended to three years under certain circumstances. In addition, under the terms of the Stage 2 Option, Thompson Creek is required to meet all other expenditures necessary to maintain and advance the Project. Operatorship will pass to Thompson Creek upon initiation of the Stage 2 Option period."
Again, given the current state of the company, this is not a deal in which they should be engaging.
Yes. It's $15m for 30% plus the option to plunk down even more money to get it to 50%. That's how I read it too. That doesn't make this deal at this time for tc to be a wise move.
The term is "Real Options". To be technically correct, they are paying $15m for an option that has a $50m strike price. The way I characterized it is still directionally fair without getting into RO technicalities. The conceptual effect is the still basically the same as described.
Spartan, with the threat of delisting and penny pps, I would think that rational intelligent execs would want to recover their pps to remedy delisting. If refi etc all sewn up, then why hide from that investment with amarc?? Wouldn't they do a press release to project that confidence???
Spartan. To a point, I agree. But ever watch that show on tv "(criminals) caught on camera"? Folks doing a lot of stoopid stuff for a lot less and end up getting arrested. Not brightest amongst us. Perron Dacron had don haven't proven that they aren't of the same intelligence. So no benefit of the doubt as far as I'm concerned.
I am still trying to figure out what exactly Perron Saxton Haddon are thinking with this $15M gamble with Amarc. The company's current market cap is $13M. This deal puts the forward valuation at $50M. Seems awfully rich. I just don't get it -- especially considering their balance sheet problems!!! What are they thinking?
They give them $3M this year and seem to get zero in return. It could literally be money flushed down the toilet with nothing to show for it ...
Switch, I gave u a thumb down for posing a horrible scenario that is likely to actually materialize.