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American Creek Resources Ltd V.AMK

Alternate Symbol(s):  ACKRF

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.


TSXV:AMK - Post by User

Comment by roberto146on Oct 19, 2024 2:48pm
85 Views
Post# 36273237

RE:I have a question:

RE:I have a question:
But how does this work if the shares are securitized as tokens?

According to the plan discussed, the tokens are RealWorldAsset tokens, 'backed' by gold-in-the-ground, not the securitization of shares.
Presumably, (but don't presume anything until officially specified) if the buyout were successful the shares would have to be cancelled with no shares outstanding, just the tokens. They are proposing to buy all outstanding shares and other instruments for cash, leaving none outstanding to the public.

How will the necessary capital be collected if each individual token holder has to pay for the mine construction on his basis?

That's an even more interesting question ...  or does the company just sell more tokens? If they do sell more than the $210MM there would be an undefined surplus of money but that doesn't last forever).
BTW I haven't seen an NGTGOLD White Paper yet (just the NGT[G]) - is there one?
Anyway, the final result of the AMK buyout would be that TUD and TUO would be share-based companies and AMK a token-based company (if they cancel all shares), with AMK having to supply their 20% (more token sales? loans?). Tokens don't have a holder's identity attached to them - the whole point of crypto holdings. Corporate loans may be (must be?) the preferred source for funds, otherwise tokens would be discounted in the market for any assessment(s) for capital raise if somehow all tokens could be assessed and the funds actually collected for capital contribution of mine build etc.


This could happen if the PEA turns out to be very favorable and no major was willing to take over Treaty Creek by then.

That's interesting too. But if a major did want to buy the whole project I suppose they'd have to buy all the outstanding tokens to complete the deal. I also suppose that they could implement something like the shareholders' holdout clause if holders didn't submit their tokens for acquisition. It might be a deal-breaker - it adds a level of complication to the acquisition process, but that's what keeps all the lawyers busy.
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