Claude Res Inc CLGRF

Financing - warrants

[clestor]

Just thinking out loud . . .

CRJ sold the $18 mm debenture in 2008 that included a number of warrants equal to 10% of the face amount of the debenture.

So, if CRJ were to sell a $40 mm debenture today with similar terms . . . then 10% of face equals $4 mm, thus 4 mm warrants.

The 2008 warrants had a $1.60 strike versus $.90 stock price at the time they were issued.  This was roughly an 80% premium and a similar premium today would imply a strike on the 4 mm warrants of maybe $1.

They don't need $40 mm but it would be nice to have some extra cash on the balance sheet.

Make sense?

[December3]

a similar premium today would imply a strike on the 4 mm warrants of maybe $1. They don't need $40 mm but it would be nice to have some extra cash on the balance sheet. Make sense?   . er, no..... the "extra cash on the balance sheet" only comes if the share price trades OVER $1 and IF the investors give money to CRJ and buy the $1 shares. . McMillian was clear on the CC that

[clestor]

I am thinking they need roughly $17 mm to refinance existing debt plus another $10 or $15 mm for the 1Q resupply.  So a $40 mm debenture would leave $5 to $10 mm in cash on the balance sheet.  But, maybe they generated $10 mm in Q4? Just rough numbers . . . A convertible would have a coupon around 6%, but a debenture with a "sweetener" (referring to warrants) would probably

[Lookin_2_Score]

While you're thinking, you might want to consider this. https://business.financialpost.com/2012/12/12/canadian-mining-industrys-biggest-challenge-will-be-to-sustain-debt-financing/

[pdcon1]

i find it hard  to believe  that a gold producer could not call the shots in a financing deal , were not dealing with an exploration co here even though the share price reflects that . CRJ best move would be to cut down on all costs and focus on mining gold .

[December3]

>>>i find it hard  to believe  that a gold producer could not call the shots in a financing deal<<< . REALLY?  Why don't you loan them the $20MM on whatever terms they ask?    CRJ has ONE source of revenue - ONE.  The banks don't like to loan money to single mine companies, because...if an "OH Sh *T!"  happens [Mother Nature

[Bottles]

"CRJ has ONE source of revenue - ONE.  The banks don't like to loan money to single mine companies, because...if an "OH Sh *T!"  happens [Mother Nature throws a spanner in the works] and the mine is shut down or production severely curtailed... Then what happens to CRJ's ability to repay???   ....and the bank has to look at the real possibility of owning the

[pdcon1]

good post bottles dec is a bit to pessimistic , as to the sky is falling down , one point  banks will bend over backwards for those who have good intentions and a clean slate that crj has Mcmillan just bought more shares of crj to add to his collection , he sees this as a buying opportunity. Banks are in the banking buis thats making loans they do not like taking over anything unless they

[December3]

Oh Bottles, once again, nice try..... . >>>>WHAT A BUNCH OF BS! You go to the bank to get a mortgage to buy a house. "ONE JOB?" says the Bank. What if you loose that job? We want you to have multiple jobs before we loan you money to buy a house. Oh, and by the way, we want an Independent Appraisal of that house just in case you default and we end up owning the same.<<

[December3]

Again, Bottles - why don't you loan CRJ the 20MM it wants?  You seem to think this is a no-brainer risk wise. . >>>Whereas CRJ has" one" mill, it has "two" mines in operation. If one were to shut down, the other can keep moving rock. Given that one will infact shut down as the shaft is tied in,  CRJ has statedmultiple [sic] times that the other mine will

[December3]

>>>>That used to be the case. As you can see in the stock price and year end tax selling, those so called "Madsen Investors" are bailing because the drill results have fallen SHORT OF EXPECTATIONS. Granted, Madsen still has a million+ ounces of gold and most likely can be mined for a profit, but its NO GG or RBY. Given that value exists both in mineralization and

[December3]

>>>>"But with a note coming due in March 2013, one has to wonder why CRJ didn't focus on mining and debt repayment in  2012, rather than exploration and acquisitions?" Amen to that. In the last PP, CRJ should have addressed the debentures. Thereafter, they could have used what money remained to upgrade/expand Seabee OR undertake exploration property wide. Here, the

[pdcon1]

DEC you sound like a scrooge or a grinch who stold christmas , by the way you can buy an unsecured mortgage if you put a big enough down  payment and avoid cmhc costs , keep bashing

[December3]

>>>>by the way you can buy an unsecured mortgage if you put a big enough down  payment and avoid cmhc costs ,<<<<< . And just how is unsecured mortgage relevant to CRJ and the financing CRJ needs? Huh? . No one is going to lend money to CRJ without some security or collateral.  Shoot, the last debenture required pledging essentially ALL of the assets of the