RE:RE:RE:CricketsThank you for dumbing it down for me. Your brilliance shines through in every post.
I'm thinking that maybe the 19,374,092 in the money warrants that need to be exercised before closing might be impacting our share price. It's sort of a " use them or lose them " kind of deal and time is now running out.
Same with the 3,450,000 options @ .08, those need to be exercised too.
So when you add it all up those guys have to come up with $ 3,058,000 pretty dam quick and that isn't an easy thing to do so maybe they're selling some. I mean reluctantly of course but what can you do !
I didn't know we were playing with billionaires, golly I thought we might just have a few millionaires scatered around but knowing we are hanging with the really big dogs makes me feel a lot more comfortable.
Bought a bunch at .23, sold a bunch at .42 after that news but now I'm feeling really stupid.
When will I ever learn !
Thanks for your help.
Goldnboy1 wrote: We aren’t day traders here. We are resource investors. No need to talk online daily. Nor worry about the day to day price fluctuation after we’ve just completed a 100%+ run. It’s volotile.
Goaweigh the deal was done for these reasons. I’ll try to simplify them for you.
1. Taxable event - The deal as originally structured was going to cause a “taxable event” for llc. This means that when SUNM issued those shares. They would have been a taxable gain for the company. Effectively eroding a large portion due to income tax. Also causing a large influx of shares on the sell order because LLc would have had to sell to fund the tax bill and only keeping the remaining in the end. Very bad for Lorraine and Sun Metals shareholders.
2. NSR - The property is now free and clear of any net smelter royalties. By being free of any incolumbances royalties wise makes valuation that much easier. The fact a company is this worried about the NSR being in their hands before they drill. Tells you how massive the potential is.
3. Warrants for funding - By acquiring LLC we’ve added more warrants to the kitty that if converted will give us an extra 3 million plus. The added liquidity from the deal will put us in the 140-150 million shares outstanding range. Perfect size for big ticket buyers who want a piece, but want a little liquidity at the same time. We are playing with billionaires. Some will take positions here in the millions. We need shares for people like that.
4. Teck - Teck owned shares in LLC via their JV agreement with the Lorraine copper project to the north of Stardust. Odds are once this deal goes through. Teck’s ownership percentage may change. If the amount of shares doesn’t meet the criteria for their ownership. They may purchase more shares. With the company not interested in dilution. Buying those shares could occur in the open market.
The deal is 100% better than the previous deal. It’s great news for both parties. The small sell off here is due to short term traders that are running for other short term trades. Anon and Raymond James bought big the last day or two while those momo’s ran. Stabilized late in the day today. Management knows big buyers want our shares. Be patient. We will have several unprovoked buying days between now and results later this year. Today is just part of the cant go up in a straight line stock market philosophy. Nothing has changed.
Well except SUNM now owns 100%, Zero NSR and assumes control of all the ground in the area. Zero common share overhang left from deal. This train will start rolling again lthis week or next. Would be shocked to see this in the .20’s ever again. .30s-.50 is our new consolidating range. IMO