Woulfe Mining Corp WFEMF

large volumes and other questions

[74volfram]

Q: What is going on with the large trade volumes these days?
- Three million shares in one week. Woulfe does not trade that much in one month.  So the activity is noticeable. The $value of the trades however is still quite small (less than $100k per day) so I do not think one needs to look further into Nomura Ninja traders and tungsten price fixing, yet.
-  Who is buying?  The main buyer through the week has been Instinet, the internet broker for institutional investors. Instinet has been holding a hidden (ATS) bid at 6c to collect sellers of all kinds. Bids are not visible on CSE exchange level 2 and buyer and sellers are revealed only after the trade.  Instinet has not pushed its bid above 6c yet. All buys over 6c have been retail.
-  Why buy now? There is really only one reason to buy WOF at this point:  it is a good deal at this price based on the merger terms.
-  Who is selling? I may be wrong, but it looks to me like the sellers are retail investors through several brokers in mostly small lots (100k shares or less). Yesterday, there was a large block (750k shares) sold by Anonymous to Instinet.  Anonymous can be any regular broker that does not want to reveal its name for whatever reason or any unregulated private investment (dark pools). Before one gets worried about these less than transparent anonymous transactions, I will say that I have seen several perfectly ordinary broker trades being booked as anonymous on the trade log.  As far as I know, this one transaction could have been Instinet moving things around, not a real sale. SP did not move.
- Why sell now? In my opinion the sales are mostly retail, so fear and greed are the likely alternatives: holders afraid that the merger will not go through; holders afraid that the merger will go through; and speculators for price volatility through the merger (sell WOF now and buy AII after the merger).
- Is it good or bad? In the long run it is usually a good thing when retail sells and institutions buy.

Q: What is the deal with institutional investors and Korea ZInc vs. the merger?
- I think the pension funds and banks holding Woulfe shares will approve the merger as recommended by their financial peer Dundee.  
- Korea Zinc on the other hand may have its own agenda. Hard to tell which way they lean and what is really driving them. KZ is not a tungsten producer or a tungsten user. 
- KZ may seem a shareholding proxy for IMC (used to have a board seat). However two years ago, when Wesson announced the "completion of the deal" with IMC (Feb. 2013) supposed to have involved also Korea Zinc, KZ pulled out on "differences of opinion". The "differences of opinion" may be what doomed Wesson. He left Woulfe two months later and Dundee took over.
- KZ has added to its position since then and has kept it at the 10% level (diluted).

Q: What is the relationship of Almonty with Dundee?  Almonty and IMC?
- Dundee currently owns 5% of ALmonty shares, all as a consequence of the recent transactions, which means Dundee did not have any ownership of Almonty shares prior to that.
- Dundee or a Dundee affiliate did participate with several other Canadian financial firms in raising the initial capital for the formation of Almonty in 2011, but apparently they were only brokering the deal and did not invest in the company.
- I think Dundee is no longer in the picture for Woulfe or fading away fast. If the merger goes through they will end up owning about 10% of Almonty, but will have no directors. It would have been in Dundee's interest to negotiate a higher conversion for WOulfe in the merger reprise and it has not happened, which shows who is driving this.
- There is no pre-existing commercial relationship between Almonty and IMC.  Almonty has its own off-taker (GTP) who has also helped with financing new construction. production is fully subscribed.  I believe IMC (TaeguTec) currently uses Chinese tungsten suppliers.