RE:RE:Copperstone Mine, Arizona: Key Highlights Adding figures to my previous post, from July 23, 2021 Sedar filing:
"At the Arizona Gold Meeting, Arizona Gold Shareholders will be asked to consider and, if deemed advisable, pass an ordinary resolution approving the issuance of up to 301,959,669 Arizona Gold Shares pursuant to the Arrangement, comprising, as of the date of the Circular and subject to change upon exercise of Golden Predator Options or Golden Predator Warrants prior to the Arizona Gold Meeting, (i) up to 284,515,638 Arizona Gold Shares to be issued to Golden Predator Shareholders (other than Arizona Gold and any Golden Predator Shareholders validly exercising dissent rights) in exchange for their Golden Predator Shares, (ii) up to 6,657,750 Arizona Gold Shares issuable upon the exercise of the Replacement Arizona Gold Options, and (iii) up to 10,687,281 Arizona Gold Shares issuable upon the exercise of the Golden Predator Warrants"
So the effective purchace price for Golden Predator was close to $40 million in market valued shares based on the stock trading price at the time of approx 12.5 or 13 cents, which verifies my recollection back then. Since that time a 1 for 10 rollback occurred. So just over two years later the company sells the Golden Predator assets for $13.5 million.
If the company had simply done a private placement by issuing all of those shares for funding instead of buying Golden Predator assets and then turning around and selling it for close to 1/3 rd of the original cost, the company would have raised just under $40 million to restart Copperstone instead of $13.5 million. Anybody see it differently?
But the annoucement from the company in September was that the $13.5 million (only $8.5 million already received and the rest in cash or Victoria shares over two years!), will allow the company to concentrate to restarting Copperstone, as though getting rid of Brewery and other Golden Predator assets was a positive thing, whereas two years ago it was adding gold ounces by having Brewery Creek follow Copperstone into production.
So in summary the market price today IMO is based on the past, both in delays at Copperstone and poorly made deals. Total lack of confidence in value being added for shareholders. That is why the share price is where it is with gold closing in at $2100