Laurion Mineral Exploration Inc. V.LME

Private Placement

[matlas]

A seemingly strange move, given that I don't think they really need the cash.

My guess is that they are doing a favour for somebody before the price jumps.

[gellometrics]

defintely was caught off guard with this news. and from what i understand there will be 261,905 warrants for $1.15.  i am debating in my head if they are planning on a buyout within a year since thats when those warrants will expire, and without buyout news or any other substantial news i don't think the price will change much. does it seem like they are planning on getting a buyout

[matlas]

I think there have been all sorts of indications during the past few months that something is going to happen in 2022.

[DAM$]

They definitely do not need the money as they have at least $8 million in the bank. As I recall they do this every year although usually in December. if you look at their financial statements there's always a few hundred thousand listed as cash that must be spent on mining expenses.  My guess is it some kind of accounting thing and likely as a reward to somebody. I wish I got the

[matlas]

Plus all the tax shelter DAM$! I think the fact that they are doing it now rather than the usual December must mean something.

[DAM$]

Obviously as they won't be able to do it AFTER it's SOLD Cheers to a Very Merry Christmas  :o)

[matlas]

Or, even after an announcement of some other development that would cause a major pop in the stock price, such as confirmation of very large resource estimate.

[Emeraldearl]

Will laurion be able to complete the new drilling and sampling that Roger is talking about on Facebook by Christmas? And I'm guessing this most recent news means there could be significant change in stock price by then since the warrants expire by Dec 31st. Is this correct?

[matlas]

No, the warrants expire one year from date of issuance, which would be around September 14, 2023. As far as Roger's comments about new sampling and drilling, I find it significant that he mentions that, but Cynthia never mentions when she posts on Linkedin. The future drilling is not necessarilry while LME is owned by current shareholders-it could be after a buyout. There is nothing

[Emeraldearl]

Thank you for the clarification

[TheD93]

It has happened in September / October

[ilovexau]

these are flow through shares. In other words since laurion does not (and never will) have revenue all the mining and drilling expenses are wasting away on the balance sheet. So why not, for lack of a better analogy, sell them to investors for cash in the bank. That is a flow through, you invest, that money must be used for exploration, and you the investor get those expenses flowing through as a

[matlas]

With respect, I totallly disagree, at least within the context of the current situation. It is not a win/win as you seem to imply. LME does not need the money now, and it will never be "desperate". Issuing shares from treasury dillutes the interest of the current shareholders. When there is a buyout, it will be for $X and that will be split amongst all the o/s shares. By increasing

[HMcanada]

Any one figured out who got the new stocks? This could shed some light on why they did it.... a publicly traded company with cash on hand ... adding a reletavily small amount ... to me... seems they are after certain people to join them.... possibly for further funding down the road or to strengthen the faith in the company's current status.... in both scenarios I see longer M&A time but a

[matlas]

To me, that seems like a very unlikely explanation, but far be it from me to say impossible. They don't have to worry about funding down the road because they never have had any problem selling flow-through shares-I think always oversubscribed. I think that more likely a bit of "sugar" for some friends and family. The fact that they put such a short fuse on the warrants (12 months)

[ilovexau]

Of course this is a "sugar" deal for an existing shareholder. It is unlikely that this is going to someone new unless it was hugely strategic. As far as dilution.... Seriously? 500k shares on 250mil shares is .2 of a cent. (2 tenths of a cent) forget dilution on this scale. If you are concerned about dilution, get out. My guess you will see a float of 300M shares before they are done

[matlas]

My point about dilution was not that this was significant in this case. I only made that point because you seemed to be suggesting as a general proposition that issuing flow-through shares was just free money to the company without any negative aspect. I dont see a float of 300M the way you do-I think that things are going to be happening soon and the only additional warrants and options that

[ilovexau]

Well it basically is free money, dilution is irrelevant to the company. It may be a concern for the shareholders but not the company. they can issue shares as long as there is appetite for them with little recourse. Fyi there are 254 million shares outstanding, another 7 million in outstanding options and warrants direct to the BoD, likely another 6m options/warrants to suppliers and existing

[matlas]

What you have written is too ridiculous to warrant any real reply

[ilovexau]

Well I was not looking for any reply, lol. But now you have me curious if it is the basic math that is ridiculous, or the fact LME can continue to issue new stock to raise money as long as there is an appetite for the shares?

[SuperJ7]

LME is 80% owned by friend/family. Issuing new stock unnecessarily, especially when they already have the access to the cach - is rediculous. 

[ilovexau]

I suppose it all depends on how far down the field the end game is. I think you and I both agree or at least anticipate a short window of opportunity here. Personally I thought it would be a done deal by now. However, if we are out to lunch and the time horizon is 2-3yrs, and we step up exploration (keep in mind they have only explored 20% of the property so far) then we will burn through that

[DAM$]

 A typical diamond drill program probably costs north of $200 per meter. LME has over $8 million in the bank, so more than enough to drill another 30000 meters. Even if they needed to raise more capital it would be at $1 plus a share therefore not substantially diluting our shares as it did in the past. I am guessing that this little 500000 placement will turn out to be strategic as they