RE:RE:Summary of phone call with Phil BerthelotWhile waiting for Newrookie elaboration/confirmation on what he said in his post: "Aem (5M) and european investors are still intereted for a PP." and rethink a bit about my second point. It's a large piece of pie for AEM, but considering what AEM has been invested in AZX, the 5M (i.e. $5M) make more sense. OK then, so AEM wants to "double down", as it appears not to be satisfied with the current 8%. It would want a bit more. However, it would depend on the total financing package. Below is a couple examples:
- Case 1 ($21.5M): If the package is similar the one arranged by EO, then $21.5M would require the comapny to issue, say ~360Ms @ 0.06. $5M would pay for $5M x 360Ms/$21.5M = 83Ms.
That would bring AEM current 8%OS (0.08 x 478M = 38Ms) to 38 + 83 = 121Ms or 121/(478 +360) =121/838 = 14.4% (AEM becomes an insider, as the holding is over 10%). After the wts have been exercised (assuming the same scheme) AEM holding would be 204M/1198Ms = 17% (still below the 20% limit). Please check my math.
- Case 2 ($10.75M): A half-size PP would require 360/2 = 180Ms would produce the following numbers for AEM: (a) before wts exercise, 38Ms + 83Ms = 121Ms/(478 + 180) = 121/658 = 18.38%, and (b) after
all wt exercise, 121+83/(658 + 180) = 204/838 = 24.34% (over the 20% limit).
For a $5M investment, a smaller PP (the half-size one that would give AZX a net of $10M, assuming that there is no non-core asset sale) would be more advantageous for AEM. It would give AEM a better grip on AZX, with some flexibility to control it holding to just below 20% by exercising enough wts as needed. Of course, there will be dilution (but much smaller than Case 1).
However, $10M may be just good enough for AZX put the house in order, do some drilling to update the current RE. If it's not enough, then sale of non-core assets should add quite a few $MM (say some $15M as indicated in Newrookie's post).
In the above discussion, only AEM was consider. What about ES, does he want to match AEM investment?
GH
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goldhunter11 wrote: Newrookie,
In my previous reply I forgot one point. You said: "Aem (5M) and european investors are still intereted for a PP."
- First, which PP are we talking about, AEM would participate in any PP arranged by anyside in the future, and you were not referring to the so-called $20M Financing arranged by EO?
- Second, If 5M is $5M then AEM share is a large percentage $5M/$20M = 25% which is unusually large piece of the pie for one group, even for AEM. If it's means shares, i.e. 5M shares then ot would be too small a slice of the pie (5M/300M shares = 1.6%). Could you elaborate?
- Third and last, what about the European investors. Is their interest at the same level as AEM, or much smaller?
Cheers,
GH
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Newrookie wrote: Yesterday, I had an appointment call with Phil, the vp of exploration in val d'or. First, he speaks french, for the quebec investors who needs information. I prepared a couples questions for him. He's very neutral. I never feel at any moment that he was suggesting me to vote for a side or another. So here's the summary: Drill resulst from the missing hole from.the summer drill program are still pending. The have'nt been sent to the lab yet. 6500 samples are pending. NI-43 shoud be fill the week or before july 24 Aem (5M) and european investors are still intereted for a PP. No rollback in the plans for now ( they need a spectacular news realese to support the rollback and it's not the case right now). They know pretty well that the share price is gonna collapse right after. Manitoba property ( non-core assets) worth at least 7-8 millions $$ each They could accelerate the deal with Probe for the cadillac break to get money to drill. ImG and teck will not manifest publicly their support to any side. If there's a fire sale from theboard, sharrholders will have the final word. It's gonna require another vote.