BLAINE, WASHINGTON--(Marketwire - March 21, 2011) - Century Mining Corporation ("Century" or the "Company") (TSX VENTURE:CMM) is pleased to announce a significant step forward with respect to its proposed business combination with White Tiger Gold Ltd. ("White Tiger") under a plan of arrangement (the "Business Combination") pursuant to a binding agreement (the "Arrangement Agreement") entered into between the parties as announced on March 14, 2011.
Century has received and delivered to White Tiger the consent of Deutsche Bank AG, London Branch to, among other things, the Business Combination, as required under the Arrangement Agreement (the DB Consent"). Provision of the DB Consent satisfies one of the conditions to closing of the Business Combination.
Mr. Daniel Major, President and CEO of Century commented, "We are very pleased that Deutsche Bank has consented to the combination of Century and White Tiger. Deutsche Bank has been very supportive of Century since we entered into the prepaid forward gold purchase financing at the end of 2009, and we look forward to a cooperative relationship as the Century and White Tiger combination continues to fulfill our obligations to Deutsche Bank."
For further details on the Business Combination and the Arrangement Agreement, including the remaining conditions to closing, please see Century's and White Tiger's joint press release dated March 14, 2011.
About Century Mining Corporation
Century Mining Corporation is a Canadian gold producer and holds strategic land positions in Canada, the United States and Peru. The Company's strategy is to grow to its gold production through existing mine expansions and acquisitions of other strategic and synergistic gold opportunities.
On behalf of Century Mining Corporation,
Daniel J. Major,
President & CEO
63 comments:
Two questions: Is this acceptance by the bank because:
CMM has them over a barrel and they will grab at anything to make sure they get the rest of their gold? or:
Is this a vote of genuine confidence in the merger - as in, they don't see a problem with the opacity of WTG?
Chillby, I think it's probably the latter, (with maybe some of the former too)... but I believe they view this transaction as de-risking the loan to Century. I personally believe it de-risks Century's ability to execute by further entrenching us with strong backers, access to capital, more diverse assets - though I definitely want to learn more about the Russian open pits, potential access to institutional investor base, etc.
I realize that most people posting on this board are concerned about the non-arm's length nature of this merger. I also know that people feel we're not getting enough of the combined entity or we don't know enough about WTG (something we need to get more comfort on)... I just think the value of our shares do better with a YES vote than a NO. (What does Century look like with a NO vote, i.e., access to capital, who's running the company, does Max pound out his shares, etc.... I just see big question marks here.)
Just curious wat would stop max from selling lamaque to another company at a discounted price once/if a merger takes place. Kind of like what happened to Polyus when they sold assets from an acquired company for pennies on the dollar of its value.
It doesn't matter if DB gets their gold from CMM or CMM/WTG, they get their gold.
Peggy, CMM with a no vote moves ahead and current shareholders retain all their share value and leverage going forward. CMM with a yes vote moves forward but CMM shareholders are robbed of their current leverage and they give up more than half of their share value.
That risk is real, Rickydee. Apex Minerals suffered that fate.
Me personally, I'd like to hear straight from Mr. Finisky himself. None of his mouthpieces work very well.
I would like to see the financials to see where all this extra spending is coming from.
Here is how the numbers crunch out if we add in capital spending for Q4 and Q1
For Q3 cost for operation and administration was 8.6 million ( this included 1M package to Peg)
They also bought of equpment which cost of over 5 million.
Q4
Assume that operation and admin costs are 9 million
Assume they had to buy some pumps and other Capital expenditures 3 million
Costs would then be 12 million or 4 million/month.
Production for Q4 was 6000 oz (-2000 to Deutchbank) = 4000 oz @ 1300/oz = 5.2 million
This works out to a loss of close to 7 million for Q4 (subtract 3 million income from San Juan = 4 million but they may be spending extra cash at San Juan ramping up production there)
They closed about 8 million in financing in Q4 so that gets them to break even .. barely. (and Im sure I missed some stuff)
One would hope capital spending would be decreased to 1.5 M for Q1 Production costs 9 M
So for Q1 estimate total spending at 10.5 M (+ 1 M for Crusher all in) = 11.5 M
Production was 944 tonnes and 788 for Jan/Feb March should be at least 1200 tonne for a total of roughly 3000 tonne.
3000 tonne @ 3g/tonne = 9000 oz (-2000 to Deutchbank) = 7000 oz x 1400/oz = 9.8 Million
Lamaque will likely lose close to 2 Million for Q1.. San Juan should be providing 3 million so overall they may make a few bucks .. but it is not hard to see how a short term capital squeeze could come about.
If they can maintain over 1200 tonne/day @3 g/tonne for Q2 = 3000oz/month (after paying DB)
and not have any more major capital expenditures so total costs of roughly 10.5 M
9000 oz x 1400/oz = 12.6 M or roughly 2M in profits for Q2
(at least as they are supposed to be up to 1500 tonne/day)
Can we look at this from another angle:-
1)DB is aware of the swelling opposition from shareholders and realises that the deal is not likely to succeed
2)As such there is no difference if they grant the OK
3)If they do not, then it may be perceived the failure is caused by DB plus causing CMM to lose $13.5 million in termination payment. This is one blame DB surely does not wish to be labelled with
4)Since the original loan is secured against CMM's gold, pre or post combination, there is no difference in risk as far as they are concern
Hence I do not view this DB OK as an endorsement/approval of the deal in any way nor some derisking consideration for their loan to CMM.
Chillby, I doubt very much that we'll hear from Mr Finskiy directly. He prefers to communicate through his puppets. GoldBandit is right that DB will get their gold, no matter what. The question is what do we (minority shareholders) get?! Nada, if we let them (Finskiy & his agents) get their way; JMHO
" I just think the value of our shares do better with a YES vote than a NO." Peggy Sue
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Peggy Sue,
I addressed this question in another post, but will reiterate here in case you missed it.
CMM will NOT be a "stronger" company, just a weaker diluted entity amongst other weak diluted entities.
Look at the flip-side of what's going to happen if this merger does go thru.
1. Your 1% automatically becomes 0.4%...of what? Who knows? Daniel Major cannot tell you. Perhaps as low as 0.4 of $0.90 (where CMM is trading right now).
2. As you pointed out, Max Finsky wants White Tiger to grow...into a MILLION OZ producer by 2016...less than 5 yrs.
After this merge the new company will only be producing 120,000 oz. For this they are TRIPLING the WTG float: 114M becomes 319M O/S.
How do you think Mr Finsky is going to be getting those extra 820M oz (it ain't going to be from those Russian "exploration" properties).
No, Mr Finsky/White Tiger is going to have to go shopping again....and you guessed it, do more share swaps and DILUTE your shares even more.
Now let's do some math:
Lets assume WTG has to increase its float 200M o/s for each extra 100K oz....(just like its doing now with CMM).... now we're looking at over 1.9 BILLION shares
After that comes a 10:1 Reverse Split... now you own how much? Not 1%, not 0.4%...maybe 0.004%
Sounds like a good deal now?
GO, that was a great post - thanks. So it's not that hard to envision Century to be in a short term cash crunch. Especially if your production volume and grade turn out to be too optimistic. But even if they are not, we are cutting it close in the near term.
It's a hugely risky bet to call for DM's ouster now and to try and lose our financial backers. It's a precarious time - perhaps an inflection point, but that's a big gamble.
No one here has offered up any answers as to why we were not able to raise $5m three months ago, and why it took ~1.5 months to close on the $4m. No institutions invested. Most of us are cognizant of Century's perception problem among Canadian institutions. I don't see how turning down (admittedly) an arm's length transaction by our 40% shareholder, gets us to $1.00 any time soon.
Questions:
(1) Assuming deal goes through, who here sells their WTG New shares?
Max doesn't, and he will own 0.4x0.61 + 0.76x0.39 = 54% of WTG New.
(2) What does WTG New begin to trade at?
WTG 114.6m shrs
CMM 471.0m FD shrs
WTG New 303m shrs
Assuming: Net Cash $20M
EV 250 => Mcap 270 => WTG New $0.89 => Equivalent CMM sp $0.36
EV 300 => Mcap 320 => WTG New $1.06 => Equivalent CMM sp $0.42
EV 400 => Mcap 420 => WTG New $1.39 => Equivalent CMM sp $0.55
EV 500 => Mcap 520 => WTG New $1.72 => Equivalent CMM sp $0.69
EV 600 => Mcap 620 => WTG New $2.05 => Equivalent CMM sp $0.82
Vending in another asset changes the game from here as it’s all about critical mass!
PayDay, I hear your logic, but what does Max do with his Century shares if the deal is kiboshed? Assuming more investment is needed, which I think is a fair assumption, who puts the money in? Where were they in November?
I'm curious as to why, out of the 539 individuals who voted on the "Minimum Share Price They Would be Willing to Accept" pole.
And why out of the 388 individuals who voted on the "Ratio of shares They would accept" pole.
Only 196 shareholders have elected to add their names and shares to the Dissenting Shareholders list.
Is it possible to find out who these shareholders are, contact them and asked why they were so overwhelmingly eager to basically turn down the takeover and now do not appear to be interested in going the next step?
Of the remaining list of undecided shareholders, I'm sure there are some wit large holdings that may push our dissenting numbers over the 100,000,000 mark.
NSX001
Peggy Sue,
All I see is Deutch Bank giving their consent (an event which would seen as positive for the "yes" side) and CMM shareprice?
Did it gap up on the news? (if its such a 'good thing' then one would expect it to)
CMM DOWN ANOTHER 3%. Can you explain this?
At the end of the day, Yes, No, the only thing that matters is the shareprice.
The market does not lie. WTG is not valuing White Tiger as highly as you do. The market hates this deal.
Peggy, if CMM needs more money I think a rights offering is in order. If the shareholders who offered 76 million shares to the cause were offered shares and a half warrant at 50 cents I'm sure CMM could weather this little bump in the road......
PayDay, I would have been happy with a gap up today, but with over 76m dissenting votes (majority from "Fair for All") there's still plenty of uncertainty - so not a surprise that we're down 1 cent. WTG's share price is not a true reflection of value, I concede this point. We need to learn more about this asset and truly build-up a valuation. It's the only way.
GoldBandit, you say that more retail would buy shares with 1/2 warrants at 50 cents... But people didn't step up to buy more shares at 0.49 with 1/2 warrants at 60 cents. That I find disconcerting.
So, how much of a combined company should Century shareholders own? 65% or 70% instead of 61%?
Guys, Peggy Sue is December3 from the Stockhouse Board. She is an agitator - nothing more. She doesn't own 4 million shares; she doesn't even own 4,000 shares. She sold her meagre holdings on the February 3 news release and went into bash mode. She is sensing an opportunity here to get them back at a price lower than she sold for.
This blog was formed, in part, as a refuge from December3's self-important rants and condescending posts. She tries to dominate any debate and keeps repeating the same arguments over and over. Please do not continue to engage her otherwise I might have to start moderating comments again to keep her out.
WTG raised 24 million in cash and has a 23 million credit facility.
Someone thinks they are worth an investiment of 47 Million.
20,000 oz production is also worth something.
The combined company does not look that unattractive on paper.
My concern is this:
After the merger Finskiy will have more than 51% .. Total Control.
What is to stop him from funneling all the furture profits from CMM into some Russian bank.
Is this a "realistic" risk or possibility ?
Technically his shares would be worth more on paper (up to 20 x total profits or more) than any money he could funnel out of the company.
Peggy,
I think WTG's "assets" are valued at 150M tops = WTG sp of 1.31
0.4x1.31 = 52 cents (funny CMM is trading there right now...so I guess $1.31 is the number)
CMM value:
I'll give 150M value to San Juan (since they produce the same 20K oz as WTG Russian Mine)
Lamaque - I don't think 450M is unreasonable (150M per 25,000 oz)
= 600 M value for CMM or 1.28 per share.
So the LOWEST fair exchange in my opinion would be 1:1, and that's with discount for Lamaque and being overly generous with WTG.
Ideally, it should have been CMM taking over WTG for 0.5 CMM for 1 WTG.
---
Carib, I disagree. Peggy Sue is not Dec3...more like Daniel Major in disguise or some other CMM insider. No person in their right mind who own 1% of the company would say yes to decreasing their holdings by half.
Peggy Sue,
ONE QUESTION:
Finiskiy is going to be increasing his over all exposure to CMM from 34% to 54% (if the merger goes through).
If White Tiger was *not owned/operated by Finiskiy* and it was some other owner trying to get CMM, do you think Finiskiy would be saying "yes" to the merge (effectively reducing his CMM ownership from 34% to 13.6%?)
Or would he tell the "owner" of WTG to go take a flying leap somewhere?
Think about it.
Payday, Peggy Sue was posting on this blog long before Daniel Major was on the scene.
Believe me, she is December3 and does not own 1% of the company.
ROFL.. ok Carib. I believe you.
I really don't see how anyone claiming to own 4M shares would be on board with this deal without being a Finiskiy insider.
The only person(s) standing to benefit from this merge are:
Finiskiy
Finiskiy insiders
Retail just gets dumped on.
Payday, I sure we all appreciate your efforts in countering Dec3's arguments, but like I said, she is an agitator seeking attention. Our energies can be more productive and constructive in other areas. I don't have the time to do half of the things I'd like to do; I'm cheating my employer by sending this from work. I'd like us to be sending letters/emails to our CMM Board members asking how they could stand by and give tacit approval to the violations of the Shareholders Agreement and how they could recommend that we accept the WTG offer based on the facts as I have laid them out.
52cents.
I find this encouraging.
The lower Century Mining goes, the more management thinks they can scare people into voting yes.
I believe it will have the opposite effect. The lower the price, the madder I get and makes me want to hold onto my shares and dig in even more.
Management is stupid. They should be using reverse psychology. Raise the price of CMM so everyone thinks the merge is good.
I appreciate the works of everyone involved in the merger boycott.
I wrote 2 letters expressing my disapproval for this proposal last week. I used the form on the Century Mining website. No one has responded.
When should I expect to receive a response?
Carib is there someone specific we should be directing our email to at Century Mining?
You will probably get a generic response trying to convince you that without this merger CMM is lost.
NO questions asked, people really should be voting NO to this merger, the evidence of foul play is enormous.
TraderJoey, good point, it will just make shareholders buy up more CMM shares.
If WTG & CMM played fair and the stock price reflected the merger properly, who knows, we probably would be sitting on well over $0.80 per share. That alone would encourage a YES vote, so yes CMM's BOD are setting this up for a Big NO...
51 cents
F&*@!
Carib, you're mistaken: I'm not December3 and I do own around 4m shares. I'm not sure how I can prove this to you, but if you feel you need proof and have an idea, please let me know. You've done a great job with the site... I don't mean to dominate with the same arguments and I don't mean to agitate for the sake of it. I care for the same thing you do: share price appreciation... I just have a different view than you on how to get there.
If you read my recent posts, I think you'll see that I've been quite respectful and cognizant of divergent views.
Thanks Carib for pointing out Peggy Sue. I think she is more than an agitator -- she is some sort of an "insider" and is looking to eventually buy shares at a low price.
Thanks Carib for all the work you're putting into this.
Carib and Maria, you're only showing some intolerance for divergent views. PayDay, you wrote a thoughtful post except for where you called me Daniel Major. Guys, you shouldn't be so insistent about who someone is when you don't actually know, as I'm just a shareholder.
Carib, when I posted originally, if you look back at it, you'll see that I was calling for shareholder activism. At the time, I was upset about a 200k loan (secured against mining equipment) that PK made to the company, that the board approved, and that converted into over 8m shares... the interest was convertible too! You can check it, you control this site.
I am who I say I am. Just a shareholder who would love to see a higher exchange ratio for our shares, but who wouldn't want Max to walk away from the company.
PayDay, you wrote a thoughtful post except for where you called me Daniel Major.
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Sorry Peggy.
You still haven't answered my question though?
Do you think Max Finiskiy would be voting YES to the merge if WTG was owned by *someone other than himself*?
Would Finiskiy be willing to vote yes to have his CMM exposure drop from 34% to 13% post merge?
Looking forward to your response.
From Stockhouse:
Q. Can anyone guess what will happen if this deal does not go through - It's going to be a bloodbath with this stock.
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A bloodbath you say?
Lets look at a similar situation that happened 2 years ago. Severstal trying to steal the assets of High River Gold at 30 cents. Plenty of doom and gloom about Serverstal dumping stock, HRG delisting, facing bankruptcy etc - well orchestrated events to try to get as many people to toss over their HRG shares on the cheap.
Now what REALLY happened?
Aug 10, 2009 - Proposed buyout FAILS/Vetoed: HRG share price = 31c
Aug 11 ,2009- Day after veto: HRG share price = 36 c
Sept 2009 - HRC soars to 48c
Dec 2009 - HRC upto 59c
Jan 2010 - HRC leaps to 98c
1 year after takeout fails: HRC trading $1.00-1.50
So much for the doom and gloom.
LETS HOPE HISTORY REPEATS ITSELF
Let me see? CMM hit's $0.51c and WTG hit's $3.15 today. What does this tell us? It says people are not happy with this merger. I don't understand why it's so difficult for some to put 2 and 2 together.
Now at 76M closing in on 77M
PayDay,
"Would Finiskiy be willing to vote yes to have his CMM exposure drop from 34% to 13% post merge?"
Nope. But then, I'm sure he'd feel he could do more with the asset than anyone else.
Re. your comment about Severstal and HRG, check out the recent case study of Severstal and SCM.
Lastly, PayDay, if you had only two choices: (1) this deal or (2) no deal, Max sells his stake, which do you choose?
If we can use a NO vote as leverage to get a better exchange ratio, I'm all for it. But in the question I put to PayDay, I choose option 1.
PayDay, if you had only two choices: (1) this deal or (2) no deal, Max sells his stake, which do you choose?
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I would choose option 3.
CMM does a rights offering open to all retail investors and if Mr Finisky wants to sell his shares because of this then we can give him 50c/sh. (would he take it??...what's the russian word for FU? lmao!)
Mr Finisky needs CMM more than CMM needs Mr Finisky.
Once you understand this, his motives on what he would do with a no vote becomes clear.
That doesn’t make sense Peggy, why on earth would you choose option 1? Max selling out is not fact, just your assumption. Why would you take a chance in voting YES and losing more than half your money? Though I do agree, if they did come out with an irresistible offer, maybe the NO’s will turn into YES. But right now, No means NO.
I have followed the Century story for a number of years. I have always been skeptical of previous management and the property itself given the mining conditions, etc.
However as someone who has invested professionally in the sector for a number of years, the WTG offer is of highly dubious nature. The assets of a Russian based company, with mining assets in Siberia is hard to take at face value. The market has already voted, given the arb between the offer and the current CMM price. However how can one value the paper of WTG other than what is in working capital and a nominal value on the Russian assets.
It is clear that the WTG share price is an artificial construct and is being manipulated by its tight share structure. The goal is to get a quasi legitimate asset for cheap into White Tiger with the acquiescence of the board which has its own corporate governance issues.
Vote no to prevent this company from being sold at at discount to intrinsic value or get WTG to put up a cash offer with limited conditions
Guys, there's at least one person on this blog who's immediate purpose is to distract -- to keep us arguing amongst ourselves so that whatever needs done to keep this "merger" from taking place will not be done...
---hedge fund analyst---
we really like to hear a lot more from you. We should all spread the word about this bad merger situation to ensure a NO vote wins the day.
Hedge fund analyst: thank you for your most useful post. Here is a person folks who knows what he is talking about. I hope that Peggy Sue (whoever she is) will read it too. So: let's say NYET to Maxim & Co.
It is clear that the WTG share price is an artificial construct and is being manipulated by its tight share structure. The goal is to get a quasi legitimate asset for cheap into White Tiger with the acquiescence of the board which has its own corporate governance issues.
---------
Summed up perfectly.
Now we need BNN, Globe & Mail, and other news media to start reporting.
Hedge Fund Analyst: Any suggestions on how to do this?
Not to play devil's advocate here but I think its time to look at this from Finskiy's perspective. Fact is he could put out a press release right now to dump a healthy weight of this position run most of us to the hills along with a few institutionals and buy the .16 CMM with the proceeds and be done with this. (Just saying)This man, what ever you might think, bought into this company at .20 when they couldn't get their act together and put out a simple earnings report. Since his addition the company has been trading rough triple that. My thought is the man a business man who wants to acquire this mine and the other exploration sites change the name and roll both his companies into a single entity. By smashing the price down like many think he will hurt himself financially as well. Simply put he loses credibility, the ability to finance under a smaller market cap, his liquidity will all but dry up and then has rebuild what he's just set a fire too. I fail to see the logic. CMM was in need of a name change, check, was in need of cash, check, international presence, check and a TSX listing, also check. Just saying it might be profitable to look at this from his persepctive as well. Your decision is just that, its yours, but I think it might be worth considering the impact of this supposed scheme on the accused.
Thanks Anonymous...
Fact is he could put out a press release right now to dump a healthy weight of this position run most of us to the hills along with a few institutionals and buy the .16 CMM with the proceeds and be done with this.
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So you're saying Finisky could DUMP at .40c and rebuy at .16?
I suppose anything is possible though he would have done this already if it was so simple.
Dumping isn't going to return him the $ already invested into CMM. CMM's market cap might fall with the dump but the miners are still mining, the equipment is still on site, the gold is still in the ground. All of that going to change because Finisky has a tantrum?
Anyone owning more than 5% of the company has to declare all insider transactions. What will happen to the shareprice when Finisky has to report he bought back in?
Nice try "Anonymous" or whoever you are.
The mine at Lamaque is in a much better position than $60 million ago needed back in 2008 when everything needed to be started up again from scratch and WEGA pulled up stakes and ran.
I'm trying to illustrate a simple point that if a person that controls 36% of the company starts dumping shares on the market, he could simply smash through the bid he doesn't have to do it all at once. As he doesnt have to immediately buy back in. And to your point the mine is still there and the miners are still there, but now so are the creditors ie Deutsche Bank, looking at a rather tattered rudderless company that has lost most of its management/BoD, financial backing and ability to finance and still has a bridge loan obligation. I fully understand he would have to issue a press release before he did this, take a look at the chart data from Nov/09 the last time his name was attached to a press release, the market thus far has given the devil his due. The number 1,2, and 4 largest institutions trading this stock (since the announcement)have been net accumulators.
http://www.centurymining.com/i/News/222009-1.pdf
Anyone wish CMM had chosen Door Number 1?
I feel like we're playing Deal or No Deal with the devil.
Against the background of all illegal
or other questionable activity that has gone ... I say bring the share dumping on!
Jail time could be just around the corner JMHO.
We had expressions in the real Depression like "not worth a wooden nickel" or "do not take a wooden nickel" Applies to the shares being flogged . Don't it?
To Anonymous:
Just like Payday said, Finskiy would have already sold off his shares for profit then re-buys them on the cheap. That said, why would a so called professional individual do such a thing in the first place. At the same time, how do millionaires become billionaires...
If Mr. Finskiy and/or any of the BOD’s from either company want to tarnish their reputation, then by all means go right ahead, though keep in mind the authorities are watching...
Carib - You are DEAD Wrong! I am not PS.
I would appreciate it if you would cease besmirching my name. I am on your side in this fight.
We need to stick together and not degenerate into name calling and personal attacks. We need to quit seeing bogeymen when there are not. The enemy here is clear- if Is Finsky & Cronies, let's don't loose sight of that.
Can we get back to the business of organizing a group to dissent from the deal?
I think we are going to need to put together a detailed "How To" when it comes to filing for "dissenting rights" as many retailers will not understand what needs to be done, and in other cases lazy brokers will try to dissuade shareholders from taking actions that requires their back offices from having to do additional work. Then there will be the differences, if any, of dealing with RSP accounts and IRAs.
This effort might include a form letter that shareholders could add their name and address to, add their broker's name, type of account (cash, RSP, IRA) and other required info - and instructions on posting, deadlines, etc.
So I suggest we move forward on things like this and leave the unfounded personal attacks aside.
-DECEMBER3
I am simply amazed that there are people on this board and elsewhere, who think this is a good deal for shareholders.
I am just a small investor and not an expert by any means but it is still difficult for me to take any of these YES arguments seriously.
What am I missing?
test
When is Deutch Bank supposed to give CMM the rest of the money ? Isn't that coming up soon?
Does that whole CMM agreement for extra funds with Deutch Bank get null and void if the merger goes thru?
What Max is after is 50%+ ownership of the combined company. Major can talk about CMM owning 61% of the merged company, but Max will own 50%+ all by himself. He doesn't need our approval for anything after that.
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Wholy $hit!
This gets more corrupt and bizarre by the day.
1.5M shares dumped today and bought up by Finisky no doubt.
The only chance CMM shareholders have is by banding together and voting NO! (though I'm sure Peggy will say that since Finisky owns 50%+ he will pump it up back to 2B market cap - any chance of that?)
One last thing I forgot to mention in my last post.
I know it would never happen, but I'd be perfectly happy to see Max dump all of his shares. Yes the share price would temporarily collapse, but once he was done dumping, it would be like forcing a cork down into water and releasing it.
A 100,000 oz/yr producer will be valued according to its assets and production earnings - not the last price that Max sells at. We'd be free of the Russian and his associates. We'd be a lot more attractive to other takeover candidates that could buy all the shares without having to deal with a Russian that owns a third of the company. Otherwise it makes it difficult to get 2/3 of the shares!
But I don't want a white knight. The company is on the verge of making it on its own and having its share price re-valued.
I wonder if Endeavor is in the mood for another round with the Russians?
http://www.miningweekly.com/article/endeavour-sells-crew-gold-shares-for-a-tidy-profit-2010-09-13
This whole takeover reminds me of The Godfather, when the Corleone family ligitimizes its illegal dealings into an olive oil trading company, turning all falsely gained profits into tangible assets.
Hi Carib
I share your views totally. Can't have said it better.IMO, for those who know CMM, its history, the gold in the ground, further exploration potentials n what has happened in the mine fronts in advancing Lamarque over the past 8 months to a year will invariably come to the same conclusions. We were touching $0.75 before all these issues n actually blog members then were expecting the sp would take out its recent high. of $0.87 on way to cross $1.00.
Wingfong, this reminds me of someone who was talking it up with Major at the PDAC conference and Major had mentioned that they were finding that in some of the zones the gold at Lamaque was *stacked up like pancakes, one on top of the other*, and there was a lot more gold there than they first thought!
Of course 2 days later out comes the chicken little NR of March 8.
CB
Sorry to ask this question again but what is the protocol for applying for dissent rights within a tax sheltered account, aka TFSA. I was given info from my broker that they would have to remove shares from the TFSA account in order to give me share certificates, they also said that when it came closer to the time that I would have to call them again. My broker is TD Waterhouse, I would really like to get someones opinion or info on this as this is probably something most brokers dont deal with on a daily basis so the real answer can be hard to come by.
I think we are going to need to put together a detailed "How To" when it comes to filing for "dissenting rights" as many retailers will not understand what needs to be done [December3]
So true, and absolutely necessary! We can't afford filing errors.
...what is the protocol for applying for dissent rights within a tax sheltered account? [Rickydee]
I too need this information. Don't hold many shares, but I'm determined to stay the course to help prevent this rape.
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