RE:RE:RE:RE:RE:RE:RE:RE:RE:GCM Mining To Acquire Aris Gold At No Premium To Marketit is
impossible for gcm to own all these projects with 60 or 70 million shares outstanding, simply because gcm went from 62 mil to 98 mil shares because of the merger with gold x. gcm used cash to buy aris shares and debentures, so there was no dilution of gcm shares yet, just dilution of aris shares. going from 98 mil to 130 mil shares is the merger with aris. that 30 mil extra shares is not straight dilution for nothing. with those extra shares they got:
1) funding from external investors who paid around $2.25 for aris shares.
2) new management team with much better reputation
3) wheaton funding for marmato because of second management team to build it. gcm might not have been able to get funding for marmato by itself because they already had their hands full building toro as well as operating segovia. hard to do 3 things at same time, 2 large construction projects. if gcm was funding marmato by itself, it would still need to sell gcm shares and dilute, in place of the $2.25 aris shares sold.
4) soto. gcm probably would not have gotten joint venture to operate soto because adding that would be handling 4 things at once, or telfer/woodyer had connections to get it.
5) juby. gcm might not have been given option to pay all cash for it, who knows, the seller may have insisted on retaining an interest in juby by getting shares, either aris or gcm shares.
for those extra 30 mil shares they receive all these 5 items. getting the new management team i think was the most important for the long run. it was not all dilution for nothing in return. certainly there was dilution, but not to the
enormous extent of 60 mil to 130 mil, doubling the shares in return for nothing.
northforce always bashes after he has sold all his shares, so that he can selfishly buy back at a lower price later. we have seen this repeat many times before, over and over. he claims davies was the best guy they had who tried to restrain dilution. that is so
hilariously ridiculous. the cfo is the guy in charge of these dilutions. he is in charge of financials. a good cfo does not just try, he actually does. if a ceo wants to do massive dilution, a good cfo would just refuse to do it.
kkkrrr wrote: the problem is.. GCM gave away 56% of Marmato and now the get it back for more diluton .. GCM gave Aris a lot of money for Juby and SOTO ... old management wasted shareholders money ... i hope these projects are worth this money and new management will stop such transaction in the future ... yes , GCM is highly undervalued now ... but we could own all these projects with 60 or 70 million shares outstanding ...old management destroyed value ... the good part is..i think Serafino knows he is not able building these big mines and new we have mine-builders as new management... 3 growth-projects , no need for new transactions for the next 5-10 years ... another good pont is.. prices for raw-materials are coming down..steel , copper are much cheaper new.. this weill help building the mines on budget ... additional i hope new management will scale back Soto Note and will make the prajekt less capital intensice.... but first we have to built Marmato + Toroparu