VERTEXONE read this one (sometimes I hate this site)So just to be clear on this, Vertex has pledged it's approx. 10 million shares of Core to Titan, at least that is the last we heard, and then Titan will give them 2.5 shares for 1. And then Vertex will own 25 million shares of Titan. Titan has at present, it seems,and it can change quickly, 297 million shares out. So Vertex would own almost 10% of Titan if this were to happen. And Core has 167 million shares out, and if by some unlikely shenanigans, Titan were to get all of them at the 2.5 x (they would only get my shares over my dead body, which given Titan's history can't be ruled out), then there would be 167 m x 2.5 = 417.5 m + 297 m = 714.5 m shares out in the 'New' company. At present Vertex owns approx 6% of Core, after this 'deal' they would own 3.5% of the 'New" company.
Now I would think that even someone with Vertex's recent investment history - dismal - would be able to figure out that Titan is worthless: very little cash and dropping quickly, the Vista Mill which wont make more than pocket change without spending millions and years developing ore sources, and properties they don't own. Which means the new company will have exactly the same assets of value that Core has (Core's Assets) , exactly the same amount of cash, unless trillions more shares are issued to raise more cash.
This means that Vertex's % of those assets of value will fall from 6% now to 3.5% after, but before the huge dilution that will follow as surely as the sunset follows the sunrise. In this case the sunset will be on any value the Core shareholders once had in Core. That would be a 42% drop in value of Vertex's 10 million shares in Core, if they can get out before the huge dilution that will happen to raise more cash. So at least Vertex is consistent in their investment strategy which as I showed yesterday, has been to lose in the 40% range on many of their funds.
So I heard a rumour that a documentary is planned to 'Tell the Tale of Tulin and Titan'. Just idle talk at this point, but would be a compelling story. Sure bad things happen in mining all the time, but this is changing quickly and even in third world countries the types of regulation in place in Ecuador, for example, is the norm. I recently read about an Australian company being kicked out of Thailand and they weren't doing anything that bad,mostly the locals just didn't like them being around. And companies from so called developed economies ,which Australia would be, are held to a higher standard.
Canadian mining companies will now face human rights charges in Canadian courts
Canada is the undisputed powerhouse of the mining industry, home to 75 per cent of its companies — but the industry is plagued by allegations of rape and slavery abroad. Now those who feel harmed or violated can seek justice back in Canada
and
Peru voters demand corruption-free gov't
So my point is, I suppose, is that what Titan did at Tulin was so bad compared to the rest of the world, that a documentary just might catch some attention. And especially since Titan is from a 'modern' country that should be policing their companies overseas activities.
I would like to see a reenactment of the shootout if a doc is made. News of the shootout was first discovered by a long time poster here, and it was what exposed the entire sordid story. It played a large part in defeating the merger, leading to Mr. Piggotts' investigations, and even a CBC news story.
So back to the original topic: Vertex, I wonder if they don't see some risk at being 10% owners of a company that has a fairly good possibility of being very widely exposed as ruthless, demented - choose your own word- posioners of aboriginal people. Not what a smart company would risk, I would think. The question might be then: Is Vertex a smart company?