American Creek Resources Ltd V.AMK

Alternate Symbol(s): ACKRF

Metals & Mining Industrial Metals & Minerals

American Creek Resources Ltd. is a Canada-based junior mineral exploration company, which is engaged in the acquisition and exploration of mineral properties, principally for precious metal deposits. The Company’s projects include Treaty Creek and Austruck-Bonanza. The Treaty Creek Project covers approximately 114 square km in the Skeena Mining District of northern British Columbia and is situated approximately 70 km north of Stewart. The Austruck-Bonanza Property is located within the Kamloops Mining Division 53 kilometers north-west of the city of Kamloops in south central British Columbia. The Austruck-Bonanza Property is underlain by Devonian to Triassic Harper Ranch formation comprised of fine grade sedimentary rocks including mudstone and shale and includes basaltic volcanics. The Company holds 100% interest in the Austruck-Bonanza Property and 20% interest in the Treaty Creek project.

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American Creek Resources Ltd > The REAL cost to AMK shareholders of a LOI termination

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Comment by Larry60on Jun 12, 2024 2:36pm

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Post# 36085375

RE:The REAL cost to AMK shareholders of a LOI termination

No cost?

You think costs have been $115k?

By August, ill bet most the PP at 13 cents a unit is all gone on legals.

You think AMK will be able to collect $115k from Cunningham?

Buyer pays the $7 Million? Its $7 million less than what will go to shareholders aka 1.5 cents a share anyway you look at it.

If the non deal just goes away, you dont think it will leave a stink behind? You dont thing it will reflect badly on board and mangement????

Have you not seen that TUD and TUO are down 10% on this news?????

Only benefit of this non-offer imho is to those, like myself and Stockmoves, who sold Friday morning!

24 cents is in the rear view mirrow until we get good news on TC

rockport1 wrote: In my opinion, this LOI offer from Cunningham Mining (CM) has effectively no cost to AMK shareholders whether it succeeds or not. The LOI has already caused the share price to rise from 11.5 cents to where it is today, and has been as high as 25 cents. The volume was sufficient for most shareholders to exit at a price substantially higher than where it was prior to the offer.

However, the point of this post is to demonstrate the cost of the offer to AMK if the buyout is not completed for pre-existing shareholders.

First, if CM does not raise sufficient funds or withdraws for any reason, AMK receives $115 k. This should be sufficient to cover the legal and admin expenses of the offer. This arguably wil leave AMK in a neutral financial position. The share share price will fall, but is likely to settle near the original 11.5 cents. The increased market attention could mean a slightly elevated range.

In the interim before August 5, 2024, AMK is free to entertain any unsolicitated, superior offers to the CM LOI. They are only restricted from negotiating existing alternative offers, and intentionally soliiciting new offers. Again, no real cost to AMK shareholders for the 60 day period.

Finally, should AMK receive and and consumate an alternative offer within 9 months of the LOI termination, there will be a $6.3 million compensation to CM. Note, the compensation will effectively be borne by the acquiring company. This again has no direct effect on AMK pre-existing shareholders. They will receive whatever the new offer is. The payment to CM being common practice compensation for initiating a takeover battle.

Do your DD folks.