GREY:WFEMF - Post by User
Post by
74volframon Jun 05, 2015 12:54pm
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Post# 23801206
all in a day
all in a daywhere there is a will there is a way that's for sure.
In rough numbers, Almonty just bought 80M (shares and convertibles) from willing party Dundee for aggregate $5M. it turns out to be about 6.5c /share on average. No theft or coercion. Clearly Dundee wanted out of managing Woulfe company and Sangdong mine: either they did not want to do it, they did not know how to do it, or the Koreans no longer trusted them to do it. No need to argue any more about it. That is it.
Could Almonty have paid more? they offered 8c (in shares) three months ago and were rejected (in my opinion) because they did not put up cash for Dundee's shares. The 5M offered now is likely all Almonty could reasonably afford.
Could Dundee have taken the mine into production by themselves? In my opinion again no. They had their chance two years ago when they ousted the Wessons and again last year when the final feasibility was being completed. They should have poured tons of resources into the site and established a real presence in Korea. Instead it looks like they chose to run the company from a mail box in Vancouver. Dundee had wanted out (in my opinion again) as soon as the "preferred shares" option was voted down - rightly so - a year ago.
With a new CEO and a new board in the making. Almonty gets to have the majority of the directors (will end up with 4 out of 7). The choice of Black as the CEO for Woulfe is (in my opinion again) brilliant and should allay IMC and local Korean fears that the timely development of the Sangdong mine may not be the primary objective of Almonty. This is also the precursor to a merger of the two companies. The merger now needs to happen because of obvious competition issues and it will be proposed soon enough. The merge ratio cannot credibly be lower than what was proposed in January and confirmed now with the Dundee sale (between 1:10 and 1:8). It will also depend at what conditions IMC comes on board.
As for Ned Goodman, he and Dundee do not have much to do with Woulfe anymore as of yesterday besides remaining as semi-passive shareholders, and these new guys are definitely not cronies. I would not say Goodman is laughing his whatever off on this deal. He has spent 20M to buy Woulfe shares over the past 4 years, a lot more than is getting back from Almonty and I have to believe he is hoping to recover some of it through future share appreciation at Woulfe and Almonty.