Laurion Mineral Exploration Inc V.LME

New Press Release - LAURION ANNOUNCES PROPOSED NON-BROKERED PRIVATE PLACEMENT OF FLOW-THROUGH SHARES

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.TORONTO, Oct. 27, 2023 /CNW/ - LAURION Mineral Exploration Inc. (TSXV: LME) and (OTCPINK: LMEFF) ("LAURION" or the...read article.

[GoldBelt]

Now why would they do this if a deal was on the table and a buyout near?  Guess the BO isn't happening soon after all. Disappointed with this news. 

[CharlieBaba13]

My guess....buyer says it's only worth $3 based on what LME has proven.  Cynithia knows it's worth more and won't settle. ... Drilling/proving is expensive and slow, she needs money.   Also why Nick stepped down...going to be another year at least.  Great opportunity to buy more is around the corner....$0.20 is coming.     

[matlas]

So, in answer to the question " why would they do this if a deal was on the table and a buyout near? My answer is because a deal is on the table and a buyout is near! This is a last "kick at the cat" to get some F&F in under sweetheart terms.

[StevenHunter]

Whoa folks..... don't add 2 and 2 and get 5. If you don't use your exploration credits you lose them.   This has been a procedural step Laurion has taken every year to take advantage of this simple low cost way to add cash.   No reason not to do the same this year. The issuance of this flow through is BAU and hasn't got a thing to do with M&A, USCG, special committee

[matlas]

Thanks Steve-Nice try, butI will stick with my explanation. Selling what exploration credits? They had to complete the drilling this year in order to fullfill committments regarding PRIOR FT shares they issued. They would not have any credits to sell-these new shares will have to be covered off by exploration work next year. If one embraces my theory, then that will be done under the helm of new

[Primpage]

Steve, can you explain more about these exploration credits you mention? 

[Primpage]

Steve, what are these explorations credits you mention?

[StevenHunter]

https://natural-resources.canada.ca/our-natural-resources/minerals-mining/mining-policy-taxation-and-industry/taxation/mining-taxation-canada/mining-specific-tax-provisions/8892 In Canada if you create these credits as an explorer but don't have enough revenue to utilize them in offset you can sell them to a 3rd party   The credits flow through to the buyer, hence the term "flow

[matlas]

I think everyone knows that Steve.  However that does not explain the point I made.  I stand by my opinion of what this really is. 

[StevenHunter]

Primpage had asked for an explanation of what the credits were.    

[matlas]

Wonderful Steve-we understand the position you are in! You are doing the best you can.

[fatlas]

If these PP shares end up going to people close to LME this is as bullish a sign as I'll think we'll ever get - can't wait to find out.  Insiders haven't been adding to their positions for years - I assume because active deal discussions have made it impossible for them to do so. Of course it could also be that they each own the exact amount of shares they want - but as I

[matlas]

I am not sure we will necessarily get to know who buys or relationship.  Remember this is the only way that such people can acquire this quantity of shares without going through market and boosting price.  The fact that some small premium over market and no warrants gives air of legitimacy. 

[Lambosntendies]

So I usually try not to be glass half empty or glass half full, I like to try and think from the perspective that the glass in question is simply twice as big as it needs to be. Like many on here, to me, the face value of this news does not promote a glass half full view. Part 1.  So LME issues 4,821,429 FTS to a purchaser, further diluting the total shares outstanding by that

[matlas]

Lambo- The company does not get any tax savings. They just get subscription proceeds. The tax savings goes to the purchaser of the shares. My view is that this was done strictly to accomodate significant long terms investors, and Steve just confirmed that. They needed year-end tax shelter, and LME accomodated them in recognition of their support over the years. LME did not really need the

[Lambosntendies]

Thank you for the clarification Matlas! 

[matlas]

You are welcome Lambo. Oh, BTW, $10 Billion would have been a nice easy number to use too! Just saying:)

[fatlas]

Re Part 1 - laying out the scenario as you have where you get less per share is NOT in your interest. But I would say that there are a lot more variables potentially at play than what you have laid out. What if a deal collapses and the company needs to survive another year - the cash on hand would be good for you then. If it turns out not to be necessary - I don't think that means it was bad

[JoJoHairBlo]

Don't forget, these are the same people that did the PP last year @ $1.10.  Maybe Cynthia is trying to make it ip to them, so to speak.

[Wmaver]

was just about the say the same!! oppps sorry about that,  you lost out on your last investment.  here buy in now and you will get 2x as much for the same money.....

[matlas]

Just keep in mind guys that with FT shares, even if there is some decline in value, you can still be ahead because of the tax deductions. Typically, between write-off of CEE and ITCs, i think that more than 50% of investment is covered by tax savings. The flip side is that the allocation of CEE reduces cost base of shares for tax purposes, but that does not matter until you sell, and meanwhile

[Lambosntendies]

Those people, at one point, had the confidence to buy in at $1.10 with expecting a return on that and then get todays shares for a deal.... Well they were confident enough at $1.10 that should be a strong indiciation of where the true value of LME is.. higher than $1.10 and much higher than .50 cents! follow the smart money people! They sure as heck arent selling stock right now, only buying and

[Lambosntendies]

Thats fair. I understand Cynthia is in a position where she needs to be exploring all possibilites, as any great leader should. In the scenario you have laid out I get stuck on the idea that we already had a great balance sheet with a solid cash position that would take us into 2025. I strongly agree with the idea though that whoever it was buying in, this is more of a positive than it would

[StevenHunter]

I can now confirm that the buyers of this flow through issue are the same buyers of the previous 4 flow through issues.   All existing, significant shareholders.    Definitely a vote of confidence from shareholders already very much committed to LME.    Business doesn't get more as usual than this.  Raising cheap cash to create income is how juniors stay