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1) mth -2 (would currently be Oct'09) 2) mth -1 (Nov) 3) start up mth (Dec - financing needs to close off early Dec) 4) mth 2 (Jan'10) 5) mth 3 (Feb) 6) mth 4 (Mar - first gold pour at Lamaque)
John Paulson, the US hedge fund manager who earned billions with savvy bets on the collapse of the US sub-prime mortgage market, is launching a new gold fund, which will include $250 million of his own personal investment.
The fund will focus on gold mining stocks and gold-related investments, according to The Wall Street Journal.
Mr Paulson is among a number of hedge funds managers stocking up on the precious metal, for centuries considered a hedge against inflation, as governments around the world ramp up spending to combat recession.
Mr Paulson’s combined gold and gold-related investments make up about half of his firm Paulson & Co’s holdings.
He already owns big stakes in gold miners AngloGold Ashanti, Kinross Gold and Gold Fields. He is also by far the biggest shareholder of SPDR Gold.
Production05, any idea why Union was used for the first Tranche of the PP, and, I think, David LeClaire for the second Tranche? I found it a bit odd that they would switch, but perhaps this is common practise?
Three possibilities come to mind (there may be others though):
1) Perhaps Union wasn't able to find sufficient number of subscribers willing to pay $.20 (which was about $.04 above market price at the time). Maybe they were insisting on a discount below $.20.
2) Perhaps some of the subscribers Union had enlisted will now be subscribing to some of the $21M major PP. The TSX-V has allowed the option of up to $20M of that PP to done through FT. Finskiy & Scola has guaranteed to take down all $21M PP assuming they close the PP. However, Finskiy & Scola and Century seem to have left the door open to the combination of all possibilities, with regards to what the PP will look like. Finskiy & Scola may have Canadian associates, via their investment companies, that have use for Canadian tax benefits to be realized through FT shares. A previous NR stated that the major financing will comprise of Finskiy, Scola, their associates and their affiliates.
Getting back to the Union clients, they may prefer the Finskiy & Scola FT much better because they come with warrants (the bridge FT offering did/do not have warrants).
3) David LeClaire may have just approached Century with a better offer (thus bumping Union out of the picture). Mr LeClaire is only getting 4% cash and 4% warrants. This is lower than Union's fees of 7% cash and 7% warrants. The David LeClaire deal is better for Century. On this latest $2.7M financing, we saved $81,000 in cash fees and 405,000 in warrants, versus what would have been paid to Union.
3 comments:
From Times Online
November 18, 2009
Paulson hedges with plunge into new gold fund
John Paulson, the US hedge fund manager who earned billions with savvy bets on the collapse of the US sub-prime mortgage market, is launching a new gold fund, which will include $250 million of his own personal investment.
The fund will focus on gold mining stocks and gold-related investments, according to The Wall Street Journal.
Mr Paulson is among a number of hedge funds managers stocking up on the precious metal, for centuries considered a hedge against inflation, as governments around the world ramp up spending to combat recession.
Mr Paulson’s combined gold and gold-related investments make up about half of his firm Paulson & Co’s holdings.
He already owns big stakes in gold miners AngloGold Ashanti, Kinross Gold and Gold Fields. He is also by far the biggest shareholder of SPDR Gold.
A spokesman for Paulson & Co declined to comment.
Production05,
any idea why Union was used for the first Tranche of the PP, and, I think, David LeClaire for the second Tranche? I found it a bit odd that they would switch, but perhaps this is common practise?
yikes1,
Three possibilities come to mind (there may be others though):
1) Perhaps Union wasn't able to find sufficient number of subscribers willing to pay $.20 (which was about $.04 above market price at the time). Maybe they were insisting on a discount below $.20.
2) Perhaps some of the subscribers Union had enlisted will now be subscribing to some of the $21M major PP. The TSX-V has allowed the option of up to $20M of that PP to done through FT. Finskiy & Scola has guaranteed to take down all $21M PP assuming they close the PP. However, Finskiy & Scola and Century seem to have left the door open to the combination of all possibilities, with regards to what the PP will look like. Finskiy & Scola may have Canadian associates, via their investment companies, that have use for Canadian tax benefits to be realized through FT shares. A previous NR stated that the major financing will comprise of Finskiy, Scola, their associates and their affiliates.
Getting back to the Union clients, they may prefer the Finskiy & Scola FT much better because they come with warrants (the bridge FT offering did/do not have warrants).
3) David LeClaire may have just approached Century with a better offer (thus bumping Union out of the picture). Mr LeClaire is only getting 4% cash and 4% warrants. This is lower than Union's fees of 7% cash and 7% warrants. The David LeClaire deal is better for Century. On this latest $2.7M financing, we saved $81,000 in cash fees and 405,000 in warrants, versus what would have been paid to Union.
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