RE:RE:Stock price...Celtics, I bought the stock at $0.055 and sold at $0.135 but have currently backed away due to the Metalstream deal. I have zero issues related to the company and the lands they hold. I have always watched this area build out because it is the geological counterpart to west Africa.
My concern is not related to financing (or their ability to get financing) it is if they sign over a 12.5% NSR and the deal falls apart the NSR stays, as per the current contract.
Altamira is screwed forever.
You can't function as a gold producing company giving away 12.5%+ of your net profits.
Please refer to what Karora Resources (formally RNC Minerals) had to do to get out from a 7.5%NSR to Maverix Metals on their properties. The NSR was reduced to 4.75% + $5 million cash + 35.1 million shares (valued @ $17.8M). That was for a mere 2.75% reduction in the NSR.
That is why this is currently a bad deal. Nothing to do with bashing just reality.
If they can revise the contract to state that for the initial tranche of $1M a 1% to 1.5% NSR was held and then after the second tranche of $5M dollars an additional 10% NSR is held until the final gold delivery. I would be more comfortable.
Unfortunately this is not currently the case. Altamira has to sign over a 12.5%NSR to get the first million dollars. If Metalstream fails to come up with the second tranche the NSR stands.
If the Agreement is terminated for any reason prior to delivery of all gold purchased under the Agreement, then the Royalty shall survive such termination.
I would certainly hope that ALTA pays attention to their investors concerns, in relation to this agreement. I have tried calling all of these entities (including ALTA,GYA and CSQ) and not a single response from any. Clarify the agreement if necessary but as it stands it is garbage.
By the way a 5c low to 12.5c (currently) is only a 2.5X increase and not a 4X increase. That would be 20c a share.
Cheers