My E-mail To Rush Rare Metals and Myriad Uranium!Peter Smith CEO of Rush Rare Earth Metals:
Thomas Lamb CEO of Myriad Uranium:
I just listened the Crux video presentation with Thomas Lamb of Myriad Uranium who at the 4 minute point in the interview briefly touched on the fact that Myriad has a plan in works to acquire 100% ownership of the Copper Mountain uranium project. This plan was never discussed any further in the interview. What is the plan?
https://www.cruxinvestor.com/posts/myriad-uranium-csem-leveraging-historical-data-for-high-grade-discovery-5873 As a shareholder of Rush Rare Earth Metals, I am now concerned that it might be in my best financial interest to sell my shares in Rush and purchase shares in Myriad Uranium.
It is apparent to me that the Copper Mountain project may have the best prospects for growing my investment income now that Rush's Boxi project exploration plans do seem, very uncertain. Am I wrong about this?
There is no question that Niobium and other Rare Earths may offer a great value to a company's shareholders if it really holds all of the goods! But with Rush Rare Earths, is this really the case?
What are the future exploration and drilling plans at Boxi? Are there any?
Lately on this matter, all we have so far is silence! Is some pertinent information about to be released?
Uranium is now on the cusp of a much greater demand. Even today, we have learned that power giant Constellation Energy is planning to re-open the Three Mile Island Nuclear facility in the next couple of years with the near term demand from the AI space gaining a much greater traction (Microsoft is involved here). Others in the AI space will also be scrambling for all available energy supplies especially those with a low carbon footprint like nuclear energy.
https://www.politico.com/news/2024/09/20/constellation-nuclear-plant-deal-microsoft-00180218 One of your companies may become the better investment. One may not. Will both of you gentleman please let me know which of your two companies will become the most successful and your reasons as to why?
Myriad plans to spend money on exploration by raising capital and by drilling. Rush Rare Earth Metals has no such plans as far as I am aware. The better investment is usually the one where a company actually spends some exploration dollars to find a resource.
Now with Myriad apparently planning to acquire 100% ownership of the Copper Mountain project, how might I as a Rush shareholder benefit in the future by holding shares, whose cash value, may be only be determined by their the Boxi project, if their Copper Mountain holdings, soon become negligible?
Does Myriad have some plan to dilute Rush's ownership of the Copper Mountain project down to a 2% NSR or less? Would Rush continue to hold, even that small amount?
Whatever the case, could such an important dilution for Rush shareholders involve the payment of some significant amount of cash directly to them? That would certainly be a enticing motivation for Rush shareholders to keep their shares! Buyers too would be delighted at such a prospect! This potential prospect could be announced! Up would go the price!
Could the management of Myriad simply hope that Rush isn't capable of raising sufficient financial capital to fund any possible future joint venture spending requirements, for exploration at Copper Mountain, once Myriad spends enough money to gain their 75% ownership of that project? That latter amount of spending may likely happen, very soon!
If Rush can't raise the necessary capital, their dilution might become automatic to some 1 or 2% NSR!
Would this be a good prospect for Rush shareholders? This amount of money must be paid first before Myriad would receive any revenue benefit!
How much money might be involved in the payment of a lowly NSR? Might this be some significant amount of dollars? It would have to be paid in American funds!
Some royalty streamers greatly value NSR returns and pay good money upfront or after the fact to acquire them!
The first Copper Mountain drilling campaign will be limited due to the cost. Myriad could do more in the short term because permitting for drilling already allows for more money to be spent!
And more drilling permits will needed in future months and years! But they will need a lot more capital as each new year arises!
The Canning project may be the first of many future exploration and drilling plans to be announced. How much will the rest of them actually cost? How long will this take?
Is it only up to Myriad Uranium to decide how much money will be spent, who will have to spend it and when commercial operations may commence? Is this in the option agreement?
Is it only Myriad who takes on all the financial spending requirements or will the option agreement, later be changed?
Are both of these company operators, friends first or potential future adversaries? They may get along now but what are their plans for the future?
Could the commercialization of Copper Mountain happen sooner? Or will it, more likely happen, only later?
According to the option agreement, Rush will only receive their 25 million dollars from Myriad after commercial operations have commenced. It might be in Myriad's best interest to delay the commercialization of the project as long as they possibly can!
If Rush cannot or will not add value to their Boxi project by exploration on behalf of their shareholders, would Rush management considering issuing a single dividend payment to their shareholders equal in value to what money they might receive from Myriad Uranium?
Or does Rush have some more immediate plans on selling their company outright to any highest bidder?
Or do both companies now have some plan in the works to merge in some nearer term M&A with Rush abandoning their Boxi project altogether?
Joint ventures are always complicated endeavours. But for both company's shareholders, complete transparency by both public companies involved in the transaction is an absolute necessity!
I would appreciate a response to these questions by both company managers with respect to their different perspectives on these issues.
Silence is only golden if a deal is already in the works! But if so, you should announce it soon! It isn't fair to any potential sellers who stand to lose a lot of their future investment dollars!
And of course, buyers would also like to know!
An apparent slip of the tongue may have unintended consequences! What is really going on here?
I intend to share this e-mail on the Stockhouse forum and any response that I might get from either of you!
Shareholders have a right to know!
All the best! Java