Post by
tano on Nov 25, 2005 6:54pm
About Resource Capital Funds
Here is some info on Resource Capital Funds. I hope that this firm does not intend to "steal" the company away from small shareholders at bargain basement prices.
https://www.resourcecapitalfunds.com/rcf_abou0.html
It's hard to say what motivated Kinross to sell its CLG position at $1.76 per share. Given CLG's promising prospects, $1.76 per share seems very low. This is pure speculation on my part, but maybe Kinross wanted to crystallize a capital loss (I don't remember what price Kinross paid for its CLG shares). Alternatively, maybe the goal of the transaction was simply to transfer the upside potential offered by CLG's shares from Kinross' shareholders to RCF; it would be interesting to see if any Kinross insiders are investors in RCF.
Comment by
utomdsb on Nov 26, 2005 9:39pm
according to SEDI, RCF is big in EuroZinc. Cumberland sold off its
interests in Eurozinc in the last 2 years (about 4.5M shares)
Maybe that's how RCF heard about Cumberland (they might have bought some of those shares)
Comment by
Roundtrip on Nov 27, 2005 12:09am
tano,
Kinross bought their first position in CLG on May 4, 2004. CLG was trading at around $2.20 Cdn at that time. So it looks like they sold at a loss.
rt