Post by
Wangotango67 on Oct 13, 2022 10:09pm
LARGER PLAYER PERSPECTIVE
Let's look at this from the stance of a larger player -
Someone who has the capital or access to the capital.
258,000,000 mil shares
x - $.01cents.
= $2,580,000 cdn ( if taken private take shareholders wtih the private company )
= grants corp 5% fixed ownership
30/70 structure
30 % ( 5% corp ) + ( 25% common shareholder )
70% reserved for future takeout interest
5% CORP PERSPECTIVE
100,000 gold oz ( example )
x 2200 cdn spot
= $220,000,000 cdn
x 5% ( corp )
= $11,000,000 ( $2,580,000 investment converts - 420% )
SHARE STRUCTURE VANTAGE ( one with lots of shares )
I'll now pull a random figure out of thin air...
let's see - how about - 18,750,000 ( wink )
18,750,000
x $.01 cent
= $187,500 current value
If the new plan was everentertained how much would the 18,750,000 shares convert to
supposing 100,000 in situ metal value - using the common share value of - 25% ?
258,000,000 shares ~ 18,750,000 shares
= 7.25 % value
100,000 gold oz
x 2200
= $220,000,000
x 25%
$55,000,000 mil cdn
x 7.25%
= $3,987,500 cdn ( coming out of - the 25% ( whole figure )
$187,000 VS $3,987,000
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STICK TO CURRENT PLAN ?
18,750,000 shares @ $ 0,01 cent
= $187,000 cdn
- 10 x roll
$18,700
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As one can see.... there's a distinct advantage using this new model i came up with.
Going private
Calculating resources
Assigning in situ value to share structure based on current spot prices
Fixed model of - 30/70 structure
Leaving ample opportunity for profits - fututre buyer - ( everyone treated with respect )
BURN RATE
Website
Share structure software ( buy, sell, management )
Ofifce
Few employees that require few shares to operate )
As mentioned in last post - using 100,000 oz - example.
the crossover value if tied to in situ metal - would result in - 25% common share in situ valuing
= $.25cents per shares.
Squeezes out all other hands in cookie jar...
Direct in situ value goes to - corp and shareholders.
At $.25 cent foundation only fluctuating on spot metal
increases stability, less volatility.
FIRST YEAR
4,000,000 shares = $1,000,000 cash flow for drilling
4,000,000 SHARES = $1,000,000 for wages ( run costs )
As more metal - in theory - is tacked on to resources - values g oup inshare price
minus the shares used in expenditures.
drilling must produce 10x or more - metal value - than shares expended
in order for modle to work.
with a $1,000,000 drill campaign and 150m drills ( 5,000 meters )
i would say, the junior could still increase metal value ( in situ ) 10x greater than, shares expended.
5,000 m
~ 150m
= 33 holes @ 150m
13 holes could be duds... ( buffer )
and 20 holes hitting the mark would perhaps fuel the increase of continual resource expansion.
So.. .these are my thoughts....
Looking at it from a different perspective.
If the markets applied in situ metal values... as they should.
Stocks would not be bottomed out.
Consolodations would be a thing of the past.... ( almost )
And... i for one.. .
would not have to come up with different formats to try and fix things.
The figures above are only hypothetical - but it is interesting
to see how values increase taking it private and using the - standard - spot metal value
applied to measuring resources applied to share value .
Quite advantageous -- i'd say.
For all parties.
While saving the shareholders from immense loss.
Not investment advice...
If other are only reading this post and not former posts...
I suggest you read the former posts - these are merely ideas....
trying to avert a 10X roll - while providing alternative solutions -
Cheers....