Lawsuits and FundingA lawsuit or an IROC inquiry would be a disaster for the stock, no matter the allegations are true or not. Who is the plaintiff? Almonty? not going to happen: Mr. Black got his big mine in the East.
Who is the accused? Michel Gaucher? Ned Goodman? good luck! Expensive to prosecute, difficult to prove, and in the end only the lawyers will make money and stock price is decimated. So a big NO from me on lawsuits and inquiries. What's done is done. Let's get moving. I am not surprised Lewis Black acknowledges past mismanagement. it is not a bad move. in line with his outspoken character and puts him in a good light with the locals. It is also not exactly breaking news. The fact that he singles out Dundee for blame makes it likely that Almonty will be not be doing deals anytime soon with them, as to be inferred from recent financing deals. Also interesting is the fact that Mr. Black wants to move Almonty out of the Venture not into the TSE, but out of Canada altogether into the London Stock Exchange. I will not miss the Venture, just like I do not miss the CSE. Venture almost looks designed by the large banks with the specific purpose of keeping small companies from raising public capital on reasonable terms and eventually crushes their share price. Going to the LSE has advantages for European investors, including the German crowd that seems to be interested in the Company.
Typically funding for construction is raised as a mix of debt and equity. in this caee they seem to be choosing 40% equity and 60% debt. There will be banks (likely Korean) to lend about 40M after ALmonty raises 30M on the LSE to construct the mine. We all know Sangdong is technically difficult, but one has to trust Almonty knows what they are doing. They have successfully developed a very similar mine in Portugal and are currently operating at a profit even in the current depressed market. They have never had unlimited funds, so it looks like they have learned how to spend their money wisely. Not a "safe play" but certainly better than what we had before and one that I think will have significant upswing in the commodity market recovery cycle.