Clausi updates us on his Financings, Takeovers and Confusion
The following are updates on my recent articles, which are all linked in for context and disclosures.
Fission Uranium Corp. (TSCV:FCU) and the entire Athabasca Basin, from April 1, 2015. Still in play. Deals are being done, money is being raised, eyes are being set on prizes. Fission’s bought deal financing, originally announced at $15M, saw so much demand that it finally closed at over $20M. Expect more from the Basin and Fission. I’m still calling for Fission itself to be bought out within the year at a substantial win for its shareholders.
Miocene Metals Limited (TSXV: MII) from March 18, 2015. Miocene was doing a four-way takeover / financing with Wallbridge Mining, Oz Corp. from Australia and a private Jamaican mining company. I understand the financing is completed and Miocene is waiting on final TSXV approval. Watch for the new-look Miocene to start trading in the next couple of weeks.
Contagious Gaming (TSXV:CNS) from April 13 and 14, 2015. Still no word re M&A activity from this developer and manager of online gaming. I’m not concerned as M&A activity has its own timetable and can’t be rushed. I’ll be concerned if a few more weeks go by and we still haven’t heard anything. Looking forward to the first quarter of financials and MD&A after the go-public transaction so we can get a clearer look at the costs structure.
Copper Mountain Mines (TSX:CUM), from April 28, 2015, concerning its need to make better disclosure with its shareholders concerning the NSR’s on the Copper Mountain Mine. Either CUM or Hornby Bay Exploration has made inaccurate disclosure. I received over 20 emails and took over 10 phone calls from shareholders, geologists and market players, all of whom (except for one) had really nasty things to say about CUM.
The one person excepted above had unpleasant things to say about Hornby Bay’s combative James Brady, but did not take issue with the NSR description.
I’ve gone back to CUM’s 2007 PEA and there the magic description is, “Approximately 10% of the claims, primarily in the northeastern property area where exploration is not currently contemplated, are subject to certain production royalties (from 1% to 5%).” CUM’s current disclosure speaks of the ‘northwestern’ area – in a property this size, this change is significant but I can’t find any reason for CUM having made it. That PEA contains an appendix showing the claims and their related NSR’s, authored by CUM’s current CEO and VP Exploration, so they have to know about the nature and extent of Hornby Bay’s NSR’s.
In addition to Hornby Bay’s NSRs, it seems that Teck Resources Ltd. has a NSR on other claims on the Copper Mountain Mine.
I can’t see how CUM’s “10% by acreage” description of the NSR’s can possibly be accurate, but I’m willing to be proven wrong by Copper Management. I’d also appreciate an explanation for the change from ‘northeastern’ to northwestern’.
Expect a longer follow up article in the next couple of weeks as more information reveals itself.
GTA Resources and Mining Inc. (TSXV:GTA), from Jan 26, 2015, has been quiet lately. Management told investors at PDAC in March that the immediate priorities were an internal study of the economics at Northshore (NI 43-101 released June, 2014) and to get on the ground at Ivanhoe. We’re looking for news as these events unfold. (My original disclosures still apply).
Cancana Resources Corp. (TSXV:CNY) last week announced its intention to close a non-brokered $500,000 equity financing at 19 cents per share, with gross proceeds intended for general working capital purposes. The next major items to watch for are the 2014 audited financials and MD&A, which should be out shortly.
The Canadian medical marijuana market continues to convulse as we wait for the results of the Allard and Smith court decisions. Expect the number of realistic MMPR applicants to drop as Health Canada upgrades its protocols and requirements. The ‘ready to build’ concept will likely disappear, with the entire equity risk to completion then being placed on the applicant.
Anaconda Mining Inc. (TSXV:ANX), from Feb 18, 2015, continues to make progress on its two-pronged business plan: optimize the mill and expand the resource base beyond the mill’s immediate area. In Q1, Anaconda sold 4,508 ounces of gold resulting in $6,266,754 in revenue at an average sales price of $1,390 per ounce.
Arcan Resources Ltd. (TSXV:ARN), from several articles dating from last summer, is finally being put out of everyone’s misery. Aspenleaf Energy is making another takeover attempt at this mis-managed debt-heavy oil producer. Expect this takeover to be successful, as Aspenleaf has agreed to take on about $156M of Arcan’s debt. A tip of the hat to the team at Stornaway Portfolio Management for battling on behalf of the arm’s length shareholders.
And lastly, from August, 2014, hemp in North America is making a strong comeback. Hardly a day goes by that I don’t see a new story about a new jurisdiction empowering the hemp researchers and inventors. This wonder fibre may turn out to be the story of the next decade.
Mr. Clausi is an experienced investment banker, executive, director and shareholder activist. A graduate of Osgoode Hall Law School called to Ontario's bar in 1990, ... <Read more about Peter Clausi>