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Woulfe Mining Corp WFEMF

Woulfe Mining Corp is a mineral exploration company. It is engaged in the acquisition, exploration and development of mineral properties.


GREY:WFEMF - Post by User

Post by mercurysmithon Jul 12, 2012 11:38pm
411 Views
Post# 20109620

Go Figure...

Go Figure...

 

Debt financing at a great interest rate was already expected, but it was nice to put a name to the Korean bank.  More importantly, the N/R suggests Woulfe still expects the offtake to complete in its original terms--the debt financing complements the $70M from the offtake agreement (not a buyout, not a renegotiating of the equity, and definitely not IMC pulling out).  

By inference, it did suggest that there was a second extension for IMC to complete its dd (beyond July 3rd and for that matter, also beyond July 12th given no announcement in that regard).  As a long term investor, I am O.K. with that, even if some day traders aren't.  The N/R was well written (unlike some in the past), and it gave me a lot of confidence that IMC is still a strong partner in the venture.  

Watching the market react to the N/R today, I think it says more about the current jumpy psychology of shareholders, than anything regarding Woulfe.  It does suggest that nothing short of an announcement of the IMC dd favourably being completed is going to significantly raise the s/p.  I can patiently wait for that news.  Eventually the s/p will reflect the real value, or else there will be lots of eventual profit taking in the form of dividends.

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