The News from the August 12 press release that is causing all the commotion: "CMI Capital of Montreal and their European partners have made an offer for all the issued and outstanding capital stock of Indocan Resources Inc. (OTC BB:IDCN - news) at a price of $0.375 per share." The current price is 0.12 x 0.14. Apparently this group thinks there is potential here. The president of IDCN, Jeffrey Bruhjell (604-760-7115), was not impressed with their offer, however, and claims that he has had discussions with other European groups at higher buyout offers than that. Mr. Bruhjell is looking for a lot more and is going to make someone ante-up if they want a piece of IDCN.
Here is what I know about the company:
Outstanding shares: 47 million
Shares in float: 12 million
Current trading range: 0.12 x 0.14
Get historical range here: tradepbs.com
Listing of recent press releases: biz.yahoo.com
The company owns the rights to a potentially large amount of gold deposits. Preliminary results indicate that their Isaac's Harbour site could contain as much as 6 million ounces. The next step is to drill a trench and check out those results. After that, the entire 120 acre site needs to be characterized. That will mean approximately 100 holes will need to be drilled. This process costs about $1.5 to $2 million. Mr. Bruhjell (604-760-7115), thinks that there is at least $10/share worth of gold down there. All of this is VERY recent news. Apparently other people think this is a golden opportunity, too (pun intended).
From a July 20 press release: "The company (IDCN) has accepted USD $4,000,000 from a European investor in exchange for 10,000,000 shares being issued pursuant to Rule 144. These shares will be restricted from transfer for at least one year." For people that aren't mathematically inclined, that is $0.40/share. The open market value on July 20 was about $0.10/share. Approximately $1 million of the proceeds are going towards the Isaac's Harbour site.
From a July 29 press release: "Given the current price of the company shares and the company's excellent state of financing, the company has decided to repurchase up to ten million of its common shares in the open market during the coming two months."
Everyone should do their own DD. This is not a recommendation to buy. I am an individual investor with no ties to any brokerage houses or IDCN. |
