Woulfe Mining Corp WFEMF

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:IMC

[Segusmundo]

Hi Ark- I think KZ's anti-dilution clause pre-dated Dundee's major player role and was signed when KZ was planned to be Woulfe's major partner in 2010-11.  

Meanwhile, I don't think IMC thinks they need to be in a hurry for anything. They sit in the cat bird's seat by all but owning the mine. They have: a) a partial ownership MOU agreement (not common stock) in place with Woulfe for a 25% ownership interest in the mine itself, and, b) a forecloseable, secured, interest bearing loan agreement with Woulfe, presumably with the "rest of the mine" ownership interest as collateral for that loan.  Thus, IMC creditor rights place them essentially first in line on true mine ownership; partial ownership if things go well, or total ownership, if things do not go well. 

Dundee's new "preferred" stock and debentures are presumably now "second in line," on creditor rights, but only to the extent of its last 4 million dollar debenture/preffered stock offering. The balance of Dundee's earlier acquired common stock holdings have no greater creditor rights than ours, or any of the other major "equity" stockholders. I'm not sure I understand why Dundee didn't demand preferred stock from the day it started investing in Woulfe. They seemed to have had that leverage. Maybe as part of the loan IMC wouldn't agree to this, but now sees Dundee in a different light and has green lighted the issuance of preferred stock. All speculation on my part.

Irrespective, Dundee's last 4 million dollar offering gives them control to later convert to stock (should they choose to do so at an additional cost) over over the next several years. I assume Dundee sees no financial reason to make this conversion to stock now, when they can simply otherwise claim 12% annual interest. I assume they will convert to stock when the price is right, or dividends are paid. I wonder if IMC will want a part of this 12% interest gig next? Seg.