Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Critical Elements Lithium Corp V.CRE

Alternate Symbol(s):  CRECF

Critical Elements Lithium Corporation is a Canada-based lithium exploration company. The Company is engaged in the acquisition, exploration, development and processing of critical minerals mining properties in Canada. Its projects include Rose Lithium-Tantalum, Rose North, Rose South, Arques, Bourier, Dumulon, Duval, Nisk, Lemare, Caumont, and Valiquette. The Rose Lithium-Tantalum property consists of over 473 claims covering a total area of over 24.99 square kilometers (km2). It lies in the northeastern part of Superior Province, within the Eastmain greenstone belt. The Rose North property consists of about 31 claims covering a total area of over 16.14 km2. The Arques Property is composed of one block totaling around 136 claims covering an area of 6,840.93 hectares (ha) over 18 kilometers (kms) in length in a Southwest-Northeast direction. Bourier Property is comprised of over 304 claims with an area of 15,616.47 ha for over 30 kms. Rose South property consists of over 280 claims.


TSXV:CRE - Post by User

Comment by PADAP23on Oct 02, 2016 8:49pm
117 Views
Post# 25300519

RE:RE:HELM

RE:RE:HELMThe money Helm is putting into CRE will be used by CRE to build a plant. It is CRE that pays for the plant not Helm. Helm is only putting money into CRE. There are two ways to put money into a company: creditor or shareholder.

If Helm becomes a creditor, CRE will have a debt (liability) toward Helm. CRE would have to reimburst the debt plus the interests related to that debt. CRE's SP has no consequences at all for Helm if the money put by Helm is a debt. Helm would not get anything else than the interests on the debt out of CRE's futur operations and profits.

If Helm becomes a shareholder, CRE has no debt, no reimbursment to make to Helm and no interests to pay. But Helm gets a number of CRE's shares and would get part of the future CRE's profits by mean of increased SP. The question is not how much money Helm puts into CRE (it is 25% of the project, that is 40 M $ if it is only the first phase, and 70 M $ for the larger plant), but how many shares Helm will get for that money. And in this case CRE's SP is very important. Lower the SP, more shares Helm will get for the same amount of money put into CRE. 

I think that Helm would greatly prefer to participate in CRE's futur profits being a shareholder than to get only interests from a loan to CRE. I think mostly probable that Helm is currently manipulating CRE's SP to get the most out of their money, especially that they have privileged informations on the coming BFS.

This would bring more dilution to CRE if Helm and CRE announce a financing agreement BEFORE the BFS than AFTER the BFS as negotiated in their agreement. More dilution  means lower SP in the future. But if you were JSL and JFM, what would you be ready to accept to get the financing of the mine, and finally get very rich any way? This would be a good question to ask to the management.

JMHO

PADAP23
Bullboard Posts