We were offered C$0.415 in real value ......
Why are we trading at $0.21 ?
Tells you something about what the market thinks about Titan Minerals actual share value.
How did Core Gold directors manage to screw up the original September 2, 2019 offer so bad ?
Someone, please tell me ....
The September 2, 2019 offer from the “other interested party”, assumed to be Zhaojin Mining
Industry, worked out to the following:
$0.225 / share in cash
$0.14 / share (assumption of CGLD debt (US $18 million X $1.33 exchange rate/166,876,328)
$0.365 / share
$0.05 / share (C$10 million financing at $0.25 for 40 million sharesi (206,876,328 O/S shares)
$0.415 per share offer.
$0.415 / share of solid known value, unlike the Titan Minerals confetti paper offer of 3.1 shares for
each Core Gold share. And Titan’s offer does not take into consideration the US$18 million in legacy
debt that Core Gold has.
.
What would be a reasonable valuation of a debt free and $10 million funded SpinCo ?
What would the share structure be ?
I'm assuming that the proposed new SpinCo would not have started with roughly 206 million shares,
so what would it be consolidated down to .... a 2:1 , 3:1 , 4:1 pro rata shares issued to current
shareholders ?
At 4:1 we'd have roughly 51.5 million shares outstanding.
$10 million / ~51.5 million = $0.195 / share in cash
.
The new SpinCo would have had Linderos, Copper Duke, Zaruma and the Portovelo Processing
Plant, as well as a 60% share of all oxide ore material being mined from the Dynasty Goldfields Project.
The new SpinCo would have had no debt, and would have been pushing out significant cash flow
from production of the oxide material from numerous potential open pits targets of Dynasty Goldfields.
There would have been enough money to upgrade the Portovelo Plant, and sink some money into
drilling at Copper Duke and Linderos. Once listed, imagine the run up in share price if any drill
results proved positive on Copper Duke, or Linderos for that matter.
.
So...... with a debt free SpinCo, flush with C$10 million in cash with the “other interested party”,
(again assumed to be Zhaojin Mining Industry), having a 19.9% equity stake, exactly what did
our board of directors do that resulted in Zhaojin reducing their bid down to the December 12, 2019
offer ?
It sure looks like certain Core Gold directors were not bargaining in good faith on behalf of Core Gold
and its shareholders, and were purposely doing things that "encouraged" Zhaojin to incrementally
reduce their bid with each successive offer and counter offer ...... resulting in the lowering of the value
of the final offer to such an extent that Titan MInerals could "afford" to make a confetti paper offer that
could be perceived as being competitive with Zhaojin's offer.
.
Just my humble opinion .... I could be wrong ..... but highly doubt it.
DO NOT TENDER TO THE TITAN MINERALS OFFER
This is not over yet, by any stretch of the imagination.
GLTA
stockhouse.com |
