TMI, Wealth Minerals & Maluku Khota Settlement UpdateThe recently announced transaction with Wealth Minerals for the Escallones Copper deposit has significant upside potential especially with an improved copper price and the past successful track record of WM management and their ties to the right folks in Chile. By February 28TH or sooner we will know if the proposed deal will fly. The good news here is that TMI has made a smart move forward with its plan to divest the project to focus solely on Gold Springs development and sale.
TMI is currently evaluating with its funders as well as independent counsel the possibility of an annulment of the award decision, as well as looking to line up Bolivian assets that can be attached to force the payment. I think the odds are low that an appeal or annulment can be pursued for several strategic and tactical reasons. A very minor positive about the award amount is the Bolivian rate of interest has risen to 7% going forward.
So TMI will receive one million dollars within one year after the closing that is not dilutive, and if they decide to collect the award plus the accruing interest the B shares will be worth almost .15 cents US and TMI will get approx. $3,000,000.00 US again that will not be dilutive. That funding will go a long way toward being able to establish a meaningful drill program at Gold Springs.
The trick is to have all that happen within a year or so, but also tie up with a future strategic buyer to provide added resources to expedite and finally prove bankable feasibility.
Based on all the above both TMI & TMI.B shares are priced as if none of the above will happen. One thing that is certain is that the share prices will be much higher this time next year IF all of the above has occurred.
Look for TMI to issue a press release that puts needed clarity on its next steps to end quickly as possible the Bolivian nightmare and plow ahead on the eventual sale of Gold Springs.
Time will tell a lot more!