Western Magnesium Corp V.WMG.H

$210mil Gem Finance

[StockJockie]

I saw many of you just asking about this and tucked away in the audit report was this part.

"Subsequent to October 31, 2020, the Company received notice from GEM Global Yield LLC SCS (GEM) of its intention to arbitrate a threeyear capital commitment agreement entered into with the Company on November 19, 2019 (see Note 14 below).GEM claims that the Company has breached the agreement and is demanding the payment of $4,200,000.As at October 31, 2020, the Company had not received regulatory approval of this agreement and not drawndown any funds under the credit facility. The Company believes that the claim has no merit and will vigorously defend against it. No provision has been recognized in respect to the claim as there is no present obligation and the probability of settlement cannot be determined."

In other words they never took a draw against the money and now Gem is wanting to sue to get back what they have lost in shares and interest on what should have been borrowed by West Mag. West Mag is claiming the TSX never approved it so it wasn't a valid deal. What in the actual f*** is going on over there at the corporate office. Why am I hearing the metal won't be produced till Q3 this year now. Where is the press about the commercial site that has already been signed for since December of 2020. Consulting fees and diligence cost but you are holding back another press. Like I have said before, Sam needs to go. He hasn't meet his obligations as a CEO and driving this company into the ground. Sam has now jeopardized another major finance deal and the previous deal is wanting to sue the company. Way to go Sam. Here we are 2 weeks from the Mar-O-Lago event and it's clear they shouldn't be attending at this rate, at least not with Sam as CEO.

[Sherry35]

StockJokie - Very interesting find on your part. I have some comments with respect to this  tidbit. 1) I suspect there is a penalty clause of $4.2M (US?) for not drawing down on the three year capital commitment agreement. I don't think shares (from a convertible debenture) or interest (from a loan) come into play because "the Company ... not drawndown any funds under the credit

[Executer99]

Good post...but they have only raised 2 million out of the 7 !!!! They can't raise the rest  . #3 how much of the $7M PP is going to service this issue? Lawyers aren't cheap

[Sherry35]

Using the "3 Months Closes" from stockwatch.com, the total proceeds is $2.91M CDN starting Dec4 2020. How much of this money goes into the PP depends WMG investor versus day trader (scalper). I'd say $2.5M CDN gets reinvested. However, if one goes back to Dec 2020, the $7M CDN may have been generated. That would mean 50M shares, at avg SP of $.15 CDN, would have traded to generate

[NTRSandman]

They will probably ammend  and run another tranche at a lower price.

[Executer99]

Any opinion Probey? Hibernating 

[AucontraireII]

It's never easy to lose money in a stock, but it's especially ugly to watch a True Believer like probe run aground on the shoals of reality.

[Sherry35]

probe is a stock juicer. With the Sp crashing below support, probe has moved on to another stock under a different disguise. I will caution probe that you can only go to well so many times. Next move is to rebrand the company again. To conclude, putting lipstick on a pig results in a ... drum roll ... pig. AW

[Executer99]

A few of them left. We are not getting the copy and paste generic articles or $19 target ratings 

[stockprobe19]

Sherry i haven't moved anywhere still here still holding. Haven't sold a single share. Having said that I can't ague against the latest developements something I didn't have knowledge of. Companies haveups and downs and this certainly is a down. Sadly you making a comment that I moved to another stock under a different disguise is a classless comment, you are showing your true

[AucontraireII]

FWIW Probe, I never believed what Sherry said about you. I am very sympathetic towards anyone who loses money whether it's me, whether it's you, or whether it is as in this case, both of us. What bothers me most about this company is they don't seem to know what to report to shareholders in their news releases. You get the impression they are like the little kid who you know has broken

[stockprobe19]

I know what you are saying is true. I can't say I lost money but I haven't realized my gains either so I guess I still will wait  and see.  

[KonnectTheDots]

SJ, good find on the Gem deal, those financials are always long and hard to get through. Question: you say that it looks like no metal from the CPP until at least Q3. Why am I hearing the metal won't be produced till Q3 this year now.  Is that a feeling or is it more solid info? The market has demonstrated its confidence based on available information (and lack of it