Duluth Metals Ltd DULMF

what's going on here

[mmoschuk]

So what's going on here with this company?  The JV with Twin Metals is it just that it is going to take 30 years to produce stuff? 
Any prospects for DM being bought up at this level?
Is there a risk of DM going under?

[PetJ80]

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[mmoschuk]

Ah, thank you for the insight.  Any companies in the works to acquire DM?

[PetJ80]

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[mmoschuk]

hmmmmm interesting.  Think this is a good entry point?

[PetJ80]

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[mmoschuk]

Thanks for the outlook.  I will add this to my watchlist. The market is due for a pullback anyhow in the coming months, everyone is expecting one just don't know when.  Could very well take DM into the teens for a sp.  Time will tell.  Thanks again for your persepective 

[materialsgirl]

mmoschuk; You muse that a broad market pull back could take DM into the teens. A 10% drop from where it was today or a 2.2 cent drop per share would do that.  It is not as if that must be a long way off. I have no opinion on where it is going but the most obvious thing is that Anto buys it in August 2016 after they can do so legally.  Anto are duty bound to their shareholders to pay

[miningfundi]

I agree that Anto is in the driver's seat. Typical of majors, it sees the project as a long term strategic resource. It will not let it go other than at a premium to its cost. After the bridge loan is repaid in DM shares (the loan is secured by DM's project interest), Anto will own >30% of DM, a de facto controlling interest. So any takeover of DM will require Anto's approval, which

[MrJonathan]

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[rocdic]

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[miningfundi]

The PFS technical report is similar to an audit report: management actively participates in its preparation, and is free to strongly argue its case but the report is the responsibility of AMEC. The current PFS will not change. If new, material information becomes available to management, an updated or amended PFS may be issued under AMEC's name. AMEC is not a "tame" engineering firm.

[rocdic]

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[estebancaballo]

A major could purchase DM before the repayment of the bridge loan. They would then own 60% of the JV and could run the show. Any major who is interested would be likely to take advantage of the current situation as it would be harder after the DM shares are diluted by the bridge loan repayment. All imho.

[miningfundi]

I suppose that it may be possible for a major to purchase DM before the bridge loan repayment is triggered - provided that the loan agreement allows it. Remember also that a cash call default by Anto immediately triggers the loan repayment. More broadly, I believe that a major would only willingly enter into a JV with another major on a friendly basis?

[rocdic]

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