https://www.rockstone-research.com/index.php/de/news/5882-Aktionaere-haben-Vorrang-Tocvan-lehnt-20-Millionen-Finanzierungsangebot-ab
Shareholders come first: Tocvan rejects $ 20 million financing offer
Incredibly loyal and self-confident: now the bidding competition can begin!
Share price rally above the $ 2 mark ready to go!
First off, wow, Tocvan received an offer for so much money! All the more gratifying: Tocvan refused! Because the company is worth much more than this offer from a financially strong investment group. The interview with CEO Derek Wood, published yesterday after the stock market closed, is an absolute blast for Tocvan Ventures Corp. in three ways. and its shareholders:
1.) The up-and-coming gold explorer with a focus on Mexico has received an investment offer of more than $ 20 million. That is a lot of money and a testament to the fact that Tocvan is quickly developing an exceptionally attractive gold project in the gold mining stronghold of Sonora to production readiness. Behind the scenes there is probably a huge boiling point and negotiations with other companies are in full swing. Desirability is apparently increasing, mainly because Tocvan is still valued (far too) cheaply to accept such an offer - despite the respectable share price increase from $ 0.60 to $ 1.50 in the past two months.
2.) Tocvan has declined the offer! And for the benefit of its shareholders. Because it would have been too dilutive because Tocvan is currently valued by the stock exchange at only $ 43 million. Far too few to print more than 13 million new shares at the current share price level. Mind you: Tocvan currently has only 28.4 million in circulation. The (immoral) financing offer would therefore correspond to a company stake of more than 33%. "No thanks," said Derek Wood.
3.) Tocvan doesn't need that much money! This year the 50,000 ton bulk sample is to be extracted, which at an average grade of 1 g / t gold can yield 1608 ounces of gold (current sales value: $ 3.6 million). Income from the warrants still outstanding at Tocvan, which are currently well in the money and should bring in around $ 1 million, should be added beforehand, which is a (large -?) Part of the costs for the mining and the Processing of the 50,000 tons of ore can be paid for directly on the earth's surface.
Source: https://youtu.be/LfZErR9Pkog
German short version:
• First, CEO Derek Wood talks about the current Phase 2 drill program on the Pilar Project and the results published last week from 4 holes that were "really very good" (see here). This included "one significant stepout hole" well outside of the established Main Zone deposit. The hole returned "really good mineralization 100 meters away from the previous stepout hole which was completed 40 meters outside the Main Zone." Overall, the main zone could be enlarged by a remarkable 140 m. The gold grades are somewhat lower so far outside than directly in the Main Zone, but what counts are minable grades of at least 0.5 g / t gold. The main zone could therefore be significantly enlarged, so that a large open-cast mine has become more likely.
• Thereupon Derek emphasized that Tocvan can demonstrate "near-term economics", ie intends to prove the profitability of a (large!) Open pit mine in the near future.
• More drilling results are just around the corner: The third round of drilling results could arrive and be announced at any time. To date, results from 7 holes have been reported, with Phase 2 drilling totaling approximately 23 holes. This means that results from 16 additional holes are pending, with the majority of these holes being completed further outside the Main Zone to further enlarge the Main Zone and make new discoveries on other parts of the property. These pending drill results could have an even greater impact on the share price than the results previously published.
• Derek then speaks about the acquisition of the El Picacho Gold-Silver Project, which was announced 2 weeks ago (see here, here and here). This non-dilutive project takeover was achieved thanks to the contacts of the Tocvan team on site in Mexico. The project is "advanced and practically ready to drill with really large gold targets near a producing gold mine". The Tocvan team is excited about the chances of this second gold project in the gold mining stronghold of Sonora and can't wait to get started here and create value for shareholders.
• When asked what he thinks about the current gold price, Derek said: "I also don't have a crystal ball to predict the gold price. However, I am active in the gold market and something like a gold bug myself. I have never seen world events before, that are currently coming together and pointing to a much higher gold price. Our Pilar project is a "near-term production story" and the gold price is high enough today to get the project into production quickly. It is certainly difficult to adhere to such gold prices - Getting used to thirst stretches / corrections, but there have always been phases like this ". What matters is the long-term upward trend in the gold price, which remains intact.
• Derek then talks about financing the company: "We did a really good job moving the company forward with the Pilar Project, with minimal dilution and currently about 28.5 million shares in circulation. We recently had a couple of phone calls from prospects including a term sheet financing offer from an investment group of more than $ 20 million. But we want to keep our shareholder structure as tight as possible Bank and should add almost $ 1 million from the exercise of warrants, as these are clearly "in the money" and can be exercised. We are always open to financing, but the more important thing is to find the right partner who can match our vision with the Pilar -Production project with as little watering down as possible. We look forward to being back on the road soon to meet people and our re plans to share in person. It looks like it's going to happen soon. "
Conclusion
Hand on heart: How many other CEOs of gold explorers would have accepted such a> $ 20 million financing offer? Certainly the clear majority of all companies, if not almost all! But the Tocvan management keeps their word and shuns watering down like the devil shies away from holy water! This is music to the shareholders' ears, as you can easily see from the steadily rising share price. Tocvan remains true to his line and wants to protect shareholders from too many shares in circulation! This is commendable because it is all the more rare in the gold explorer industry. And so it can be assumed that Tocvan will get the best out of us shareholders and aim for financing that is not very dilutive, although it is much more important for the company to find the right partner to bring the Pilar project into production.
US listing and new drilling results are just around the corner: While we shareholders wait for the next round of drilling results, the US stock exchange listing could now be approved at any time, allowing a third, huge investor market to trade Tocvan shares (alongside Germany and Canada) . Since Tocvan has very few shares in circulation and the free float on the stock market is very low, the US listing could put enormous upward pressure on the share price. A month ago, the well-known US radio host Ellis Martin published his first Tocvan interview (see here). In connection with the US listing and new drilling results, a new interview could follow soon and, thanks to the wide reach of Ellis Martin in the USA, it could be a bang for us shareholders.
Gold price correction over !?
Updated chart: https://schrts.co/aWXyiEpF
Updated chart: https://schrts.co/fMbjYAyr
Company details
Tocvan Ventures Corp.
Suite 1150 Iveagh House
707 - 7th Avenue S.W.
Calgary, Alberta, Canada T2P 3H6
Phone: +1 403 668 7855
Email: dwood@tocvan.ca (Derek Wood)
www.tocvan.com
ISIN: CA88900N1050
Shares in the market: 28,441,496
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Canada Symbol (CSE): TOC
Current Price: $ 1.52 CAD (6/21/2021)
Market Capitalization: $ 43M CAD
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Germany Symbol / WKN (Tradegate): TV3 / A2PE64
Current Price: € 1.04 EUR (06/21/2021)
Market capitalization: € 30 million
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