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Vulcan Minerals Inc V.VUL

Alternate Symbol(s):  VULMF

Vulcan Minerals Inc. is a Canada-based precious and base metals exploration company, which is engaged in mineral exploration on properties in Newfoundland and Labrador. Its projects include Colchester, Gander Belt Gold, Red Cross Lake, South Voisey’s Bay, Carbonear and Atlas Salt. The Colchester Copper Gold Project is in north-central Newfoundland. The Gander Belt Gold Project extends approximately 100 kilometers from the north coast of Newfoundland to the south-central part of the island. The Red Cross Lake project is located in central Newfoundland and comprises 102 claims approximately 2,550 hectares. Its South Voisey’s Bay nickel-copper-cobalt project located in Labrador. The Project comprises three licenses containing a total of 30 claims. It also holds an interest in Atlas Salt Inc., which is carrying out a feasibility analysis on its Great Atlantic salt deposit in western Newfoundland, strategically located in the robust road de-icing market of eastern North America.


TSXV:VUL - Post by User

Comment by Copperking102on Aug 11, 2022 5:18pm
183 Views
Post# 34889777

RE:RE:A stupid question

RE:RE:A stupid question

DeputyDawg wrote: Easy answer. If Atlas are taken over the money goes in full direct to Atlas shareholders. Vulcan's share goes to Vulcan and what they do with those funds is down to the Board. 

The Board may pay themselves bonuses or they may main retain funds for alternative investment. If there is a special dividend paid it is very unlikely all of the Atlas money will to distributed to Vulcan shareholders - some will be retained by Vulcan for future projects. Laracy's history is in oil. 

The sensible investment is direct to Atlas where you have better control of your money.    
                 

Everything you say here is true, but what you fail to mention is the leverage that VUL gives you. If you're dealing with a fixed amount of cash to invest, VUL offers you an 8 to 1 ratio in shares for the same dollar. This being undervalued as it is, once the buyout is complete, with you holding more shares the total value of that pile will more than likely exceed the smaller share ownership you would be holding in SALT. Remember, VUL offers more possibilities with their alliances in place with others both now and future deals, not to mention the ongoing NSR they' ll collect from the eventual buyer.

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