Duluth Metals Ltd DULMF

Financing

[elberbank]

Would anyone like to venture a guess on the price of the up coming financing that should happen in the up coming months?

This stock is dead money until late this year / next year or until the PFS is ready.

[redmetal]

I think the deal calls for bridge loans from Anto. They received $10 million by way of bridge loan this year. The loan will be repayable in cash, the companies shares or offset against the 25% option exercise price pursuant to the participation agreement. We know Anto will want the extra 25% of Duluth if not the whole thing.  The agreement calls for 1xNAV to get the extra 25%. This should be

[estebancaballo]

Yes I recall that the deal was described as being exceptional for this industry....btw there are other good news items that can happen before the end of the year...DM will engage in drilling this summer, most likely, and any good news re: results on DM (not JV) land could send the stock much higher...DM does not stand for dead money......

[redmetal]

their financials and MD&A should be out any day. This will tell us what to expect financially and with respect to what is planned for Maturi and DEL. Dont forget they have a huge target area to expand Maturi. They are well into pre feasibility and I wouldnt be surprised to learn that their costs per pound of copper are going to come out at between negative $1 to $2 a pound with the the nickel

[estebancaballo]

Thanks for that Red....insightful and instructuve as usual.....any comments re: upcoming drilling on DM land? I think that they will spin off another co. once they make a big find on their own land, right?

[redmetal]

The DEL targets may be deeper than they thought. They added another Geologist to work with Peterson and i believe that they are bringing in some rigs that are capable of drilling to a deeper level to commence this spring. I believe that they will probably start drilling the Maturi expansion targets this spring as well.

[estebancaballo]

By this spring I guess you mean April/May? I live in Vancouver and it is spring here now so I am not sure what you mean.....in any event this is good news esp if they start drilling Maturi as well.....we are well placed to benefit from this development.....so many shorters and traders that long term investments get trashed...so much the better for us in the long term!

[DearBear6]

RedMetal,   "We know Anto will want the extra 25% of Duluth if not the whole thing.  The agreement calls for 1xNAV to get the extra 25%. This should be over $1 billion dollars."   Let me get this straight, Anto will give Duluth Metals money(and/or buy stock?) equal to 1xNAV(100% of the entire Nokomis Project) based on the bankable or definitive feasibility study that comes

[redmetal]

Bear, It has been over 4.5 years since the PEA. Double all of the ecnomics and mine life as we know now that they are considering 80,000 tons a day and have more than doubled the resource and mine life. Your math skills are fairly good as per your Polymet calculation. You should be able to figure out the economics based on the above. We will all have to wait for the PreFeasibility which should set

[estebancaballo]

Right R and re: the prefeasibility study.....I heard from another poster (can't remember who) that the study might take a while...maybe not until 2014 or later......which is a drag but can't be helped I guess (if this info is correct).....in the meantime we can accumulate shares.....all imho, do your own dd......

[rocdic]

This post has been removed in accordance with Community Policy

[specboy2011]

I like this play deposit but still trying to figure out end game..Its 10 years away from a mine...Huge if not biggest in the world.....Needs a financing.Best to wait for that as in this market no one is doing them with a premium.

[oceaneleven]

in the meantime, we have drilling on our 100% property.....Great things take time....There will be opportunity to trade & accumulate.....

[redmetal]

I would like to see some insider buying at these levels. The CEO bought at $1.45 about one year ago when it hit a 2 year low. I would also like to see and update as to where they are with the Pre feasiblity that may include some tidbits to boost the share price.

[estebancaballo]

Right and that drilling could be huge for DM......we will likely have to wait till the summer but it should be worth the wait imho.............all imho do your own dd.......

[DearBear6]

We can rightly assume that Anto will buy the additional 25% of the Nokomis project. We can assume that the additional 25% will cost over $1 billion. And $1 billion/136million shares = $7.35 a share in cash value. But Anto will pay 65% of CAPEX to start production and DM 35% of CAPEX. .35 x $1.5bil = $525 million DM pays out $525m in CAPEX and has at least $475 million left. but many bridge loans

[Jackal85]

Hi all, I'm a shareholder from Germany (and so apologize if my English is not perfect) and new to this board. I have read this thread regularly and now thought that it's time to join it. Regarding the financing - I wouldn't calculate with $1.5B as (final) CAPEX, because this was based on a 40k tpd mine. More realistic would be at least $2.5B - $3B. That means (with $1B assumption for

[rocdic]

This post has been removed in accordance with Community Policy

[oceaneleven]

After conferring with the Toronto Stock Exchange, DEL has now extended the Deadline to July 31, 2013 but otherwise all other terms and conditions of the Special Warrants continue to apply. The reason for the extension of the Deadline is the direct result of (i) the delay in receiving drilling permits for the DMC Properties which prevented the drilling necessary to complete the N1 43-101 compliant

[estebancaballo]

Right O....and they probably want more extensive results for the IPO than the currently available ones.....as for why Anto would not simply buy out DM's share, one reason (and there are likely others such as the nature of the contract between A and DM) could be that the US govt might not look too favourably on the transfer of such a huge and potentially strategic resource to foreign hands (yes

[Jackal85]

Hi all, thanks for the answers. So if I understood correctly, DM plans an IPO rather than a spin-off (free shares to old shareholders) of DM Exploration? In that case a "newer" shareholder (without warrants) would have to invest money to participate in a potential discovery, right? Or say it the other way around, at the moment a "newer" Shareholder could not really

[Jackal85]

"as for why Anto would not simply buy out DM's share, one reason (and there are likely others such as the nature of the contract between A and DM) could be that the US govt might not look too favourably on the transfer of such a huge and potentially strategic resource to foreign hands (yes DM is a Cdn company but we are considered part of the NA family in many respects)" Hi

[rocdic]

This post has been removed in accordance with Community Policy

[jjeeddoo7]

this is not really a 'strategic' mine and the government wants these mines ot happen, https://www.duluthmetals.com/i/pdf/Duluth_StateOfMinnesota_Proclamation.pdf Government wants mega taxes from this mine.  

[mayorkgh]

It is somewhat convoluted but the process, as I see it, is as follows. DMC holds the properties outside of Twin Metals. The 100 issued and outstanding units of DMC are owned by Duluth Metals (Canada) ULC, which is wholly owned by Duluth Metals Limited. By virtue of the September 2012 agreement between Duluth (Canada) and wholly owned DEL subsidiary Duluth (USA), the latter can acquire up 80% of

[estebancaballo]

I am certainly not an expert in this area and will happily defer to any other posts who know more about this than I but to answer your question my understanding is that the US govt could deem a mineral reserve to be a strategic resource as it has done for oil reserves if it became clear that such minerals were vital to US interests....I am not aware of any mine that has ever been deemed a

[Jackal85]

Many thanks for the answers. So let's see in which way the IPO will happen...