RE:RE:RE:RE:CEO.ca comments on Atlas Salt's Strategic Private PlacementLiked2Think wrote: Canticle wrote: The purpose of the funds is outlined in the filing if you want to read it. It allocates a certain amount to the initial production phase, not the actual mine construction.
There's a good chance it's an opportunity for them to make themselves more appealing to suitors, as it shows they are willing and able to take this to production themselves if they go that route.
$10M will not do jack squat when it comes to taking this to production. If their plan is the PP themselves to doing so then get ready for the most dillution you have ever seen.
them saying they will take to production is a bluff
A clean sale bringing home the value this property holds is the most preferable path for the shareholders of SALT. If they were to go it alone, a key to gather the financing needed might very well come from the sister company, Vulcan, holder of that 3% NSR. Assuming future production will be in the 8-10 million ton range, the cash that will throw off would be formidable.
So VUL, sells the NSR back to SALT for shares,thus increasing their ownership there, and SALT sells the NSR for cash to build it out. All investments involved prosper, Patrick and family retain voting control as cash flow streams in.