Duluth Metals Ltd DULMF

RE:RE:RE:RE:RE:RE:RE:RE:what's going on here

[miningfundi]

I agree that Anto is in the driver's seat. Typical of majors, it sees the project as a long term strategic resource. It will not let it go other than at a premium to its cost. After the bridge loan is repaid in DM shares (the loan is secured by DM's project interest), Anto will own >30% of DM, a de facto controlling interest. So any takeover of DM will require Anto's approval, which means a price that a major would not pay. Assuming that the above analysis is correct, DM will have to do everything to keep its project interest alive i.e. massively reduce costs and seek funds from the market (similar to 100's of other junior resource companies). To make matters worse, it has duties as the indirect operator of the project and has to make material cash interest payments. I suspect that Anto will continue to watch DM's efforts closely and will scoop it and/or its project share at a "rescue" price, which will not be pretty. But, maybe Dundas and Barclay will surprise me ....