So what do we get out of the Treasury Metals dealFirstl 130 million shares of Tresury Metals and 35 million warrants. From this 70 million shares will be issues to shareholders on record and also the 35 million warrants will be distributed to shareholders of FF and the other 50 million shares will be held by FF which represents just under 20 percent of the TML.
Therefore it is worth owning FF for the distribution to come. TML is currently trading at 54 cents as of today. That means the warrants are already in the money. FF will do this distribution within 1 year of the dea closing.
70/ 748 equals .0935 shares of TML for every share of FF
35/748 equals .04679 warrants of TML for every share of FF
So as of today this deal adds 5 cents to each FF share you own. On top of that the property will be explored and since the company controls 20 percent of the TML any upside will be added to FF share price over time.
FF shares are amonst the cheapest gold shares out currently given how many oz of gold they hold and the market will start to realize this as gold moves higher.
I thought they did a smart deal with FM regarding the silver off take with First Majestic to get the funding to advance the Springpole Gold Project. This should limit share dilution and add value to the project over time.
I am shocked that the share price has been such a laggard in this market but most investors are over looking this asset and in time the market will realize this as the weak shareholders part. You have to remember that many shareholders bought between 1 dollar and 50 cents over several years ago. Many will have lost hope and as they break some will run for the doors. I cannot blame them since the shares have done so poorly over the years and still recently. But remember the current deals will start adding news and value to the shares of Frist Mining and as the news on exploration starts to come in the shares will gain exposure and new investors will enter.