Duluth Metals Ltd DULMF

RE:RE:What Anto had to say

[marpincan]

when they say "we have taken the decision to terminate our option to acquire an additional 25% of TMM now that the pre-feasibility study is nearing its completion and due to elements of the Participation Agreement." It sounds to me like they did not like what it was going to cost them and could not come to terms with DM on altering the deal.
  So what it boils down to is that dm has 180 days to find some means of getting 220 million dollars to take Anto out (some other big player may be interested as I do not see DM as being able to raise that sort of cash short of a spectacular PFS). Or they will end up with Anto owning 40% of the deposit plus a big chunk of DM. One must also remember that if DM finds an interested party, Anto has the right to participate or match the offer so that they do not get dilluted % wise.

My thinking is that Anto is looking at the markets for base metals junior financing and is betting that DM does not find an interested party and that means Anto gets 40% of the deposit and a big chunk of DM on the cheap. That then put Anto in Defacto control of the deposit and relegates DM to a back seat.

Key will be the PFS as that is what will determine how interested another big player may be and Anto already should have a very good idea of what it says.

It looks like Dundas made a big mistake in thinking that when push came to shove, Anto would not look after its best interests first with little regard for anything else. A junior buying back its own shares is unheard off and his first priority should have been to look after the treasury so in times like this, DM could be in a stronger position.

One positive I see here is that there is a very good chance that no matter how this plays out, Dundas and some of his team will be gone ( they have been in way over their heads for some time now)

It should be a very interesting 180 days but i do not expect anything much till the PFS is out.

JMO