Investmen route taken by ESM for Vilhelmina Minerals, Sweden I am unable to understand or comprehend the route taken by ESM/FM in investing funds from ESM in an Ontario incorporation and subsequent investments in Vilhelmina Minerals, Sweden.
My question is based on these News from ESM. .
1. On September 26, 2017, the ESM Company purchased 600,000 common shares of 2587357 Ontario Inc., a private company, at a price of CAD$1.00 per share for a total of CAD$600,000 ($483,420).
2. On the date of acquisition and as at September 30, 2017, the Company held a 27% ownership interest in 2587357 Ontario Inc.
3. On September 28, 2017, 2587357 Ontario Inc. acquired a 33% ownership interest in Vilhelmina Mineral AB (“Vilhelmina”), a private company located in Sweden, and Mr. Scott Moore, an officer and director of the ESM , became a director of Vilhelmina.
4. Euro Sun Mining Inc., (TSX: ESM) (“Euro Sun” or the “Company”) is pleased to announce that it has entered into a binding letter of intent dated September 25, 2019 with Vilhelmina Minerals Inc. (“Vilhelmina”) and the shareholders of Vilhelmina (collectively, the “Vilhelmina Shareholders”) (the “Binding LOI”), pursuant to which the Company has agreed to acquire all of the issued and outstanding shares of Vilhelmina that it currently does not own (the “Vilhelmina Acquisition”).
5.A Ontario-incorporated company( Also named Vilhelmina Mineral Inc) that holds a 46.9% ownership interest in Vilhelmina Mineral AB (“Vilhelmina Sub”), a private Swedish company which owns an interest in the past producing mines in Sweden and Norway.
Note:
i) Why an investment of $600,000 of ESM is made in this company in the firts instance?
ii) Who owns this company?
iii)Now ESM buys the remainign shares of Vilhelmina , Sweden shares?
v) Is it not true that ESM has financed the Ontario based Numbered company at first to buy 33% shares of Vilhelmina Minerals, Sweden?
vi) Above all, why ESM/FM are following such a circuitous route to take shares in Vilhelmina Minerals Sweden with ESM funds.
v) Is it right do this kind of investments by a public listed compnay like ESM?
Can some on this Board explain this mous operandi of ESM/FM
Thanks