Eco Oro Minerals Corp C.EOM

Distribution waterfall....

[TiredofWating]

It has been a topic discussed here in the past, but I wonder if anyone has renewed or better clarity on the distribution of a potential settlement.

Suppose EOM is awarded the $700M US:

What amount goes to the CVRs, management, etc.?
What amount remains for the shares?

Now suppose Colombia grants mining in the area and a third party buys EOM:

Does the same distribution apply?

[oldtimer42]

Tired we have looked at this before. The CVRs have eaten up 90% of the share value, existing shareholders are left with about 10% of any award. If there is a buyout it is reasonable the CVRs would be converted to shares so the existing 106 million shares will explode to around 1 billion. Not an unreasonable outcome. Many of us have invested in at least one of the two CVR tranches for some

[TiredofWating]

Agreed.  And, yes, I agree with your assessment.  The question that remains unresolved in my mind is whether the CVRs are capped at $460M US of the award?

[oldtimer42]

Nobody knows for sure with this board and Tenor but the CRVs have eaten up 90% of the total share value. I think it most probable they get about 90% of the value of any award, there was no ceiling on that. I hope someone can prove me wrong but that was the rationale that was provided by the CVR "manager"..

[MacBook]

Tired read the terms of the CVR. glta.

[TiredofWating]

Does anyone understand point 5? from md&a Following completion of the 2019 Private Placement, the terms of such securities provided that the proceeds from the ICSID Arbitration (“Claim Proceeds”) would be distributed in the following order of priority (in each case to the extent that the amount of Claim Proceeds is sufficient): 1.in full repayment of any accrued and unpaid default