GREY:DULMF - Post by User
Comment by
mayorkghon Mar 19, 2013 2:05pm
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Post# 21151119
RE: RE: Financing
RE: RE: Financing It is somewhat convoluted but the process, as I see it, is as follows. DMC holds the properties outside of Twin Metals. The 100 issued and outstanding units of DMC are owned by Duluth Metals (Canada) ULC, which is wholly owned by Duluth Metals Limited. By virtue of the September 2012 agreement between Duluth (Canada) and wholly owned DEL subsidiary Duluth (USA), the latter can acquire up 80% of the membership units of DMC. Therefore, DEL will hold 80% of DMC and Duluth Metals will be left with 20%. The value of that holding to its respective owners and the pricing of the IPO will depend on the resources on the DMC properties. Duluth Metals and DM shareholders will benefit from the proceeds of the IPO and the value of the retained stake in the DMC properties.