Advanced Explorations Inc. ADEXF

New press release

[terarm]

https://www.canadianminingjournal.com/press-releases/story.aspx?id=1003335685

[Shlinker_]

So what exactly does 80:20 mean to the existing shareholders? Do we lose 80% of our shares?

[terarm]

My understanding is that under the Parkson Star arrangement, the Roche Bay/Tuktu assets will be transferred to a new company and the existing AXI shareholders will own 20% of that new company, with Parkson owning the rest.

[Shlinker_]

But if thats true terarm, why does Parkson Star get the entire 100% after a production decision is made? meaning we shareholders get nothing? I dont understand this deal at all...it makes no sense.  if Parkson Star gets 80% of the company, would we essentially lose 4/5 or 80% of the outstanding shares? 

[terarm]

Shlinker, I'm not sure where your reference to the 100% comes from, but I'll give you my two cents worth about the mechanics of the deal as I see it: AXI transfers its Roche Bay/Tuktu assets to a new company (Savik, I believe is to be the name), in return for Parkson paying off AXI's liabilities, and for Parkson's commitment to fund the project to production (a 100% applies here in

[Shlinker_]

Thanks terarm, Have a read below, let me know what you think: ARTICLE 3 SAVIK FORMATION AND CAPITALIZATION 7. Formation of Savik. Upon signing this Agreement, the Parties agree to proceed with the  formation of Savik on the following terms and conditions: 5 a. Before or upon receipt of all necessary shareholder and Exchange approvals, AEI  shall form a wholly-owned

[terarm]

Shlinker, thanks for the precise source of the details. As for what do I think...there's still hope. Even though this proposed deal gives us AXI shareholders only 20% of the whole project, compared to the XinXing deal which would have left us with 50% of Roche Bay and all (I believe) of Tuktu, it appears to be the best option forward. Ultimately, and for ease, let's assume that we could

[Goldengreen]

Dead wrong again. The latest press release is absolutely clear: "The Company continues to experience delays in the closing of the Joint Venture transaction as it has yet to obtain the required consensus from its major debt holders." Major debt holders = XinXing's debentures. The press release of July 25th distinguishes between debt holders (XinXing) and judgement creditors (Storm

[terarm]

Goldengreen, you're right about that press release- thanks for pointing out those details.

[Shlinker_]

Goldengreen, do you know what play-money typically refers to? money that is in surplus, money that i never had to earn myself. Google it sometime. I await the day I laugh at you even more than iam now. Stay tuned, because one way or another someone will want all that iron.

[Goldengreen]

Translation: XinXing says F--K You to the Parkson deal. We want our $13.3 million and interest back AND we want the offtake/project interest rights we've already paid for. Remember XinXing's already paid for offtake rights, Shandong Fulun Steel already has a 19% offtake right, China Mining Partners already is entitled to 1.5 million tonnes of iron ore concentrate every year for 10 years

[Shlinker_]

This is just play money on speculation with this AXI. Things could be worse - you could have invested in ADV, I feel bad for those down 300% from the year highs, now thats a poor investment if i've ever seen one.