Great Bear Resources Ltd. GTBAF

What does it mean?

[captainpooby1]

SpinCo? What the hey? What is a net smelter royalty?

[Goaweigh]

Think of it a pre arranged dividend scheme whereby every shareholder gets shares in a new Co. and that New Co., let's call it ( Great Bear Junior )  will receive a cash payment of 2 % net profit from the mine once it's built. So in future if a buyer comes along and wants to take over the whole Co. they have to first buy Great Bear Sr. which will give them all of the assets but not all

[Chad005]

It’s also a huge vote of confidence in the stock by the board, they know what they have and aren’t going to let it go cheap. They are beating back too-early offers on the company. You make those offers pay double; front end and back end because you don’t want their low-ball trash. It also puts a floor on the price because if you sell now, you risk missing out on the royalty.

[Goaweigh]

Sure but let's not forget it's just a twinkle in Chris's eye at this point, until it's actually created and a record date set and the stock in " New Co " distributed it has no teeth/value whatsoever. What do they say about counting chickens ?  Assays please !

[Chad005]

I’m not saying there isn’t risk.  If you want “zero” risk, you should probably buy some euro treasuries and forget the gold junior space. ;) If you are risk tolerant enough to invest in a gold junior, Great Bear is about as close to a sure thing as it gets.  Politics are mine friendly, drill hitting gold on every hole, amazing access to infrastructure, easy access to skilled labour

[Goaweigh]

Oh so that's why I'm here, Thanks, my memory isn't what it used to be. Tuesday Hopefully !

[lumpy13]

It's not 2% of net profits, it is 2% of net revenues after smelter costs.  So it can be a pretty significant amount.   It's essentially a bargaining chip/poison pill if the company receives an unfriendly acquisition offer that the board doesn't find sufficiently attractive.  If the unfriendly acquisition succeeds, it can provide current shareholders a long term benefit.

[diabase1]

That's correct! Oh by the way, I've got a name for it, either Great Bear Royalty or Dixie Royalty!!

[BILLMINER]

Diabase 1 I like the names

[Chad005]

Here is a NSR explanation from Franc-Nevada.  If you are too lazy to read it.  Basically you get 2% of the gold value before any significant expenses. At current gold prices that would be 29$ish times how many oz’s you think are in the ground.  Divided by 50 million is shares.  Multiply that by how many shares you own.... I hope that number makes you smile.  :) https

[vila]

Are you sure about your theory?

[BILLMINER]

Thank you lumpy13. Bang on . I have numerous 2.5 % nsr s out there with deals over the years. Lottery tickets for me however