CO Owns TTX if it its loans are convertedTRTX owes CO more than $4mm. It is convertible and if convereted will swamp the exirting equity of TTX by resulting in the issuance of 100's of millions of new shares. TTX market cap now approx $22mm. CO market cap approx $9mm.
Page 11 CO's MD&A issued Jan 27 - "As at September 30, 2020, the convertible loans and loans receivable due from Tantalex Resources Corp. have a fair value of $4,159,284. The Company’s cash position has declined and the convertible loans and loans receivable increased as a result of funds loaned to Tantalex. The Company’s management hopes to make an informed decision on whether or not to convert the loans into Tantalex common shares by July 28, 2021, after they receive exploration results for Tantalex’s mineral project in the Congo."
The money that flowed to TTX from CO is so badly structured and negotiated that is eyebrow raising...ie, call forensics. However, CO keeps the loans on its books pretty much at par and is making disclosure (which seems to be improving in its detail and quality) like the above.
The Par value exceeds the fair value. I'm not going to take the time to try and fiugure all the inter company loan terms. It appears some convert at a 25% discount to TTX's market and some at $0.05. That could be a billion++ shares of TTX...
Page 12 TTX's Audited Stmts "On July 28, 2020, the Company entered into an amending agreement whereby the terms of certain debentures (dated as of July 27, 2018 in the principal amount of USD $1,350,000 and an unsecured convertible debenture dated as of November 9, 2018 in the principal amount of $1,000,000, were amended and replaced with the following terms. The principal amounts bear interest at an annual rate of 12% per annum, payable on the maturity date. Interest shall be payable in cash or common shares, at the option of the Company. If the payment is made in common shares, the common shares will be issued at a price of $0.05 per common share. The maturity date was extended to July 28, 2021."
Five cents = a tsunami of share dillution.