This could be pure fantasy but I am going to make a wild prediction here tonight for fun: 1- in the past two trading days, out of the blue, District Copper (formerly CARMAX) just exploded in transaction volume and also doubled its stock price from one cent to two cents. We are talking here of volumes of just under one million and above two million traded shares per day when the usual volume is rather under 50,000 or even nil. The last time this stock went above two cents was six months ago, and only for a few thousand shares. The last period when DCOP traded at or above two cents was prior to November 2019. This means something is up in the air, or maybe not...
2- DCOP currently owns no assets, has a small management team that does not communicate with its shareholders often, but the firm is sitting on a stack of short term cash: at the end of July 2020, they sold their last property in Newfoundland (the Stony Lake mine project) to K9 Gold (formerly Global Vanadium) for a total in the next two years of $ 350,000 in cash and 3.3 million shares (with an extra option of half a million dollars cash and an additional 2 million shares). The market value of KNC was 32.5 cents per share when the deal was announced, then it blew to almost a dollar per share but the stock price has since came back down to an average of 34-36 cents. So, at this current level and without the extra option, the added value of DCOP cash flow with KNC shares in the next two years could be at least 2 million dollars, plus more than a quarter million dollars in cash.
3- Before that deal, their Eaglehead mine project property in British Columbia was sold last February to Copper Fox Metals for $ 1.2 million payable in the next three years. (Northern Fox, a subsidiary of CUU, also owns over 33 million shares of DCOP (some 24 %) which have now doubled in value since yesterday. Good for CUU!)
This brings the total cash flow of DCOP in the next three years (without the extra option) to above $ 1.5 million in cash and about $ 2 million in share value from KNC, if the KNC stock price remains at 35 cents. However, any major increase in the share value of KNC in the next two years automatically increases the value of DCOP.
4- Elmer Stewart, the CEO of Copper Fox Metals, sat on the Board of Directors of District Copper until the deal was announced last February and held a considerable amount of shares in the latter firm. He was also the expert geologist who signed most of DCOP and CARMAX required official mineral reports in the past. You cannot be more insider than that!
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Therefore, I think that something big is going to be announced by DCOP soon. Have they found a new vision, a new strategic plan for the firm to give them a sense of purpose? Or are they going to be bought by someone else because of their cash cow value in the short run?
The historic links between CARMAX and CUU are numerous and strong, so maybe CUU might purchase DCOP to get rid of its debt towards the firm and pay for it in CUU shares instead of paying DCOP the value of the Eaglehead agreement in cash.
I know this sounds crazy and unfair to CUU shareholders but look at what happened this past July: the majority shareholder of CUU, Ernesto, refused to trigger the warrants and pay what he legally owed to CUU and its shareholders at that time. If Ernesto was in financial trouble then, he might still be more than happy now to not deliver more cash for the Eaglehead purchase through CUU but rather by dilution of shares. He really likes dilution of CUU shares (we certainly know that by now!) when it is advantageous for him and CUU might be AGAIN running out of money this February to pay for Eaglehead and other budget expenses. Why not buy DCOP and erase the debt owed to that firm instead with CUU shares in order to preserve any precious Ernesto dollars in his pockets? Even Elmer might agree with this move since he above all other CUU insiders knows most of DCOP secrets and operations best, and he could still own a substantial amount of DCOP shares himself, which would undoubtedly rise in value through such a deal.
I feel that the pieces all fit together well in this puzzle.
Of course, any of this would have to be ethically and legally approved by the IIROC but is there anyone here who still thinks that this regulatory body is fair and honourable? Asking the question is, I guess, answering it too at the same time...
Like I said, this might be pure fantasy but something unreal is brewing with DCOP at the moment. Look at all the various private and national brokerage firms suddenly coming out of the woodwork to buy hundreds of thousands of DCOP shares in two days, and analyse the numerous past and present links with CUU with its upcoming financial commitments towards DCOP.
1 + 1 might equal 3... who knows!
Enjoy,
P.S.: full disclosure = I am a DCOP shareholder as well and I would love such a deal myself! To reunite both firms into one, I can't argue against that.