Excelsior Mining Corp T.MIN

42,200,000 shares @ CAD 1.10 per share is what this is

[CuJunior]

that is a lot of dilution.  they could never have bought those on the open market without running up the price.  but if we don't like it, we can get in for approximately the same price right now

[shahabstarship]

The only huge difference is the cost basis is not $1.10 but $0.48. Lots of firends and family to feed and offer a free ride to. Tell me this, if you participate in this bought deal and short the company right away, what is your risk? Downside is literally zero and you are rooting for company's failure.

[ArizonaBilly]

I'm not seeing 48 cents.  I see 21.1 million at $.95 and 21.1 million at $1.25.  That doesn't work out to 48 cents.

[shahabstarship]

Yes, you are right, in case price goes up, that's 40M shares gifted at $1.10. In case the participants short the hell out of the company, and the company fails they will profit a nice stack while their downside is limited to 20% or so due to the existence of warrants. The latter is probably the more logical path. Let's see how it trades tomorrow.

[CuJunior]

I agree with the .48 per share, it is not their cost basis, but how much it is costing them to control a share of stock. They put up .95 and now control the upside on 2 shares of stock for 18 months.  they don't have to put up the rest of the money for 18 months, after the stock has probably risen and they can purchase using profits. I would have gladly sold all my shares at .95, and

[shahabstarship]

Yes, this is the right way to put it. In reality, the package is worth probably somewhere around $0.90 (considering shares and assuming warrants are 5 cents each). This should put a solid floor under the share price until further news comes out. I was in TKO when it announced its poor financing. I made a lot of money post deal by doubling down and taking advantage of the current hot market. The

[CuJunior]

I would pay CAD .20 for a warrant, no problem.  And I probably would not be able to get it for that price.

[shahabstarship]

I can see the strategy if they want the cash cushion for debt financing into phase 3 in 1 to 2 years. They should be able to raise that much with about 8% internet rate with the cash positon and copper sales by then. A sweet deal for whoever participates. I don't expect this to dip down below 0.90 tomorrow.

[rozelli]

Buying new chairs for the office. The project is a gem if it is working maybe just go up as its been lagging it's peers. 

[shahabstarship]

Do you know on top of your head how much cash is required as Capex to expand to phase 3?