Lorraine is going much higher Optionee, Sun Metals has potentially made a world class discovery at Lorraine's Stardust project. This stock could go so so much higher.
“The option to acquire a 100% interest in the Stardust Project is exercisable by issuing 2,500,000 common shares in the public capital of the Company, paying a total of $375,000, and incurring aggregate exploration expenditures of $6,000,000 associated with the Stardust Project. Further, upon completion of its minimum commitments in the Agreement and upon exercise of the option, the Company is required to issue a number of common shares in the public capital of the company to Lorraine such that Lorraine holds 30% of the then issued and outstanding common shares of the Company, calculated on a nondiluted basis, as a percentage of the number of the Company’s common shares issued and outstanding.”
Based on the current outstanding shares of Sun Metals, which the latest FS says is 77.6M shares, Sun Metals would have to issue approximately 33 M shares to Lorraine. The last trade on Sun Metals is 0.36 Canadian, which makes Lorraine's stake worth about $12 Million. The entire market cap of Lorraine at the last trade of 0.14 is just $7 Million dollars (0.14 X 50 Million shares). Plus Lorraine gets a royalty:
Lorraine shall “retain a 2% NSR on precious metals and a 1% NSR on other metals which may be bought down by one-half each by the payment of $1,500,000 per royalty to the Company.”
So Sun Metals would have to pay $3 Million just to buy back half the royalty.
Plus Lorraine has a bit of cash, no debt and a 49% interest in the Lorraine Copper project, which is close by. Tech holds the other 51% interest.
Personally, I just sold some of my shares in Sun Metals to take a stake in Lorraine. IMO It's a cheaper way to play the Stardust discovery.