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Aris Mining Corp T.ARIS

Alternate Symbol(s):  N.AMNG.NT.U | CLGDF | T.ARIS.WT.A | ARMN

Aris Mining Corporation is a gold producer in the Americas. The Company is engaged in operating two mines with expansions underway in Colombia. The Segovia Operation is located in the Segovia-Remedios mining district in the department of Antioquia, Colombia, approximately 180 kilometers (km) northeast of Medellin. The Segovia Operations comprises four active underground gold mining operations, which include El Silencio, Sandra K, Providencia, and Carla. It has over 11 titles with a total area of 5,335.58 hectares (ha). The Marmato underground gold mine is located on the west side of the town of Marmato, in Marmato municipality of Caldas Department, in the Republic of Colombia, approximately 80 km from Medellin and 200 km northwest of the capital city of Bogota. The Company is also the operator and 51% owner of the Soto Norte Project, which is advancing to develop a new underground gold, silver and copper mine. In Guyana, it is advancing the Toroparu, a gold/copper project.


TSX:ARIS - Post by User

Bullboard Posts
Post by sellpubson Feb 11, 2013 2:50pm
228 Views
Post# 20970384

Warrants

Warrantsare clearly very high risk, very high reward at this point. Roughly 30months to expiry and a 2.60 exercise price seems pretty pessimisic, but on the flip side when they are trading at .005, the warrants have a leverage factor of 52x (GCM currently at 0.26), which is very high. I'm not sure who is selling, but someone has been buying all those warrants in organized cross trades. I haven't thought too much about the possible scenarios, but theoretically someone with deep pockets and an interest in GCM could go out and buy all the warrants for an insignificant amount maybe $1-2mm (Not sure on the number of O/S, but it's either 343mm or 152mm warrants), and use those warrants in the case of a takeover bid, either to protect of to acquire GCM, could they not?Ex.1) If a bid was made at over $2.60 per share by the same person/company/fund that owned the warrants, the owner of those warrants could exercise them and use it to exert control on the total shares outstanding (in conjunction with common shares they own), to pass the bid if it was not recommendd by management.Ex.2) If a bid came in at under $2.60 per share, and the company making the bid had a significant amount of shares outstanding, the owner of the warrants could potentially put in a bid over $2.60 to trigger an exercise of the warrants, and significantly dilute the common shares outstanding, thereby denying the takeover.Any thoughts?SP>
Bullboard Posts

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