RE:west lake"well well we got robbed, nothing for shareholders." I may be a little thick, but I don't read it that way. If they say 'WRLG will, subject to certain conditions precedent,
acquire all of the issued and outstanding shares of the Company' (i.e. the shares owned by Sprott, other major investors, and all other shareholders).
'WRLG has agreed to pay C$6.5 million in cash, issue 28.46 million common shares and grant a 1.0% secured Net Smelter Royalty (“NSR”) on the Madsen Gold Project as consideration for the Acquisition', and further, 'The share and NSR consideration is expected to accrue to Sprott as a FUND managed by Sprott [as Sprott] is the senior secured lender to the Company.' The fund will contain the 28.46MM WRLG shares, $6.5MM cash, and the 1% NSR.
As it's worded, the fund will contain the consideration mentioned above and will be for the benefit of all shareholders. So PGM shareholders through the fund will have credit of 1/25.6 WRLG shares for each PGM share they hold, plus a pro-rated amount of the $6.5MM, plus the revenue from the NSR. Accordingly, holders of PGM shares should receive some portion of the Sprott-managed fund. This is because WRLG is acquiring all the PGM shares.
At today's WRLG stock price of ;~60 cents, plus the $6.5MM this would represent about $23,660,000 or 3.25 cents a PGM share. Sprott's share would be about 24% of the fund based on their PGM holding, the rest would be other shareholders' share. Any amount of the NSR revenue is not included in this calculation, but would increase the value of the fund in the future.
All this is based on my literal interpretation of the press release as worded.
Question: Does this mean that PGM shareholders would be issued a receipt for their holdings in the new Sprott fund? Notice that it is a 'fund managed by Sprott', who assumes mangement because they are the majority creditor.