Reason to FinanceI also did not expect a financing, mainly because they are already in excellent shape for their own business operations, the key being "their own business"
With $260M in cash and no debt, an endako resumption and expansion already announced and fully funded by the current earnings, it's clear that this financing is not for "their own business"
Acquisiton has been the talk for some time with TCM, this is clearly a step in that direction. The reason i didn't expect it was because (like most) i figured TCM would offer a cash and share deal.
I.E. each shareholder of the other company would get X number of TCM shares. Depending on the value of the acquisiton, i would guess a range of 0.05 - 0.25 TCM shares per share of the other company. Just a guess based on the sheer value of a TCM share ($15). I mean 0.10 TCM shares would equate to a $1.50 per share transaction, or $150M based on 100million shares outstanding. Again, TCM could be looking for a $500M deal, who knows at this point.
Either way, maybe it's easier to do a cash deal, the dilution is going to be roughly the same for 15M shares in an equity offering or 15M shares in exchange for the purchase or a company.
I just want to know, what type of company is TCM looking at: Producer, near-producer, or proven deposit stage exploration company. I.E. ML, or MOL, or TTQ would fit each of those categories.
and I want to know, what sector (copper, moly, gold?, lithium?? lol Uranium?>?? haha honestly.
I'm guessing copper/moly deposit, near-production. Looks exciting, just hope the share price doesn't get drained to the $14 level.
Later