RE:RE:RE:RE:$7 mill Santa Fe property sold to Lahontan. phoenix_trader wrote: Lahontan is merging with a BC company (765) which is filing an IPO and will be listed in Canada. 1246765 B.C. Ltd has filed on SEDAR since July, 2020. Either the BCSC or the OSC will scrutinize the filing statetment and the IPO prospectus. Today's PR states McConnell will be the sole VGCX Director and does not say what VGCX's shareholding will be in the new Lahontan. One would think McConnell's bio would be the same as in the VGCX current info circulars but no it is about 6 -8 years old. My question is why since it is clear the lawyers and underwriters vet everything. Get it right is what investors want to see especially when $10 million is the proposed IPO amount.
$7 million was the carrying value of the Santa Fe property, see Note 7 of the Sept. 2020 F/S.
Today's PR is here: 1246765 B.C. Ltd. Announces Business Combination to Form Lahontan Gold Corp., by @newsfile (ceo.ca)
That link doesn't work - it brings you to the home page of "The Market Hearald".
This is a proper link to the NR:
https://finance.yahoo.com/news/1246765-b-c-ltd-announces-155800240.html As I read the NR, there is a proposed Amalgamation of Lahontan and 1246765 B.C. Limited where post amalgation Lahontan will hold 67,840,532 shares and 1246765 B. C. Limited will hold 1 million shares in the new company. Since Victoria owns 80% of Lahontan, they will effectively own 55,072,425 shares. Incidentally The NR states that Lahontan currently has net assets of $12,425,627 so Victoria's share would be $9,940,500.
If the proposed PP is successful for the minimum $10 million sought, it would add an additional 20 million shares to the total (excluding warrants). Victoria would then own 64.2 % of the new Lehontan Gold company with assets of $12,425,627 + (94% of $10 million) = $21,825,627. So theoretically Victoria's share would be worth $13.6 million.
Not bad for an asset that had a book value of $7 million. But if the Amalgamation and PP is succesful, there is the opportunity to get some real value for the Santa Fe assets with further drilling of the property. For Victoria this is like an option agreement where they retain 64.2% of the value while others raise the financing needed and carry out the drilling to prove up additional resources.
I wouldn't worry about the bio for John in the NR; I'm sure it will be updated prior to the Listing when/if that happens.