American Creek Resources Ltd V.AMK

Alternate Symbol(s): ACKRF

Metals & Mining Industrial Metals & Minerals

American Creek Resources Ltd. is a Canada-based junior mineral exploration company, which is engaged in the acquisition and exploration of mineral properties, principally for precious metal deposits. The Company’s projects include Treaty Creek and Austruck-Bonanza. The Treaty Creek Project covers approximately 114 square km in the Skeena Mining District of northern British Columbia and is situated approximately 70 km north of Stewart. The Austruck-Bonanza Property is located within the Kamloops Mining Division 53 kilometers north-west of the city of Kamloops in south central British Columbia. The Austruck-Bonanza Property is underlain by Devonian to Triassic Harper Ranch formation comprised of fine grade sedimentary rocks including mudstone and shale and includes basaltic volcanics. The Company holds 100% interest in the Austruck-Bonanza Property and 20% interest in the Treaty Creek project.

TSXV:AMK - Post by User

American Creek Resources Ltd

<< Previous

Bullboard Posts

Next >>

Post by Stockmoves1on May 02, 2024 9:46am

131 Views

Post# 36019243

From TUD Board

Should TUD buyout AMK ?? This is a well written post and may explain the strength of AMK lately... Do I agree with it? I would want to be sold on the argument of why AMk would sell out to TUD for a premium vs holding out but I do believe there may be merit in it. A well written post.

We have 3 owners of TC: TUD, AMK and TUO

We have 1 funder for 100% of costs to get to exploration decision: TUD

So who are you going to invest in, other things being equal?: TUD who funds 100% of costs, or AMK/TUO that get a FREE RIDE to production?????

Enough with the sophistry. Face the facts staring us in the face!!!

Larry60 wrote:rockport,

if we look at todays market prices, AMKs "value" should be made up of:

1) 20% piece of TC relative to TUD's 60% piece, and
2) The value of AMK's free carry to production decision.

The answer to 1 above is easy: .1788 based on exisitng TUD sahre price but would likely been to be adjusted upward to factor in all of TUDs outstanding warrants.

The anwer to 2 is a little bit wore difficult. How much is needed to be spent to get to a production decision? $60 million? $100 million? $200 million? I think it is fair to say $100 million which means thats $20 million for benefit of AMK. So that adds another 5 cents a share taking us to .2288 per share.

But there is another thing that must be factored in. If its a share deal, and I see no other way for BOTH parties, AMK will then effectively be funding part of TUOs free carry they will be funding 25% of it (AMK SHs will acount for 25% of the oustanding TUD shares). SO that adds another $5M which is another 1.25 cents takingus to .2413 for AMK share.

Finally, there should be a funding risk premium. AMK is not UNDER the gun to fund anything, TUD is. THis puts severe pressure on share price. I wont put a number on that cuz I dont want to upset those who dont realize the danger of holding TUD vs AMK/TUO

rockport1 wrote:Given that Tudor is only receiving 60% of the benefit for every dollar spent, should they consider a buyout of AMK now? Then they would be receiving 80% benefit for every dollar spent, with Teuton the remaining 20% free ride.

With today's market conditions, could they do so with an all share offer? Would this dilution be worth it? I ask about AMK because Teuton is so slow to spin-out their Treaty Creek interest, which, arguably, would make it more difficult to acquire.

Comments?