Laurion Mineral Exploration Inc. V.LME

Question for Steve: The $250k Advisory fee seems low...?

[mithril56]

Thinking outloud....does anyone else find the $250k advisory fee to be low? Especially since we all hope a multi-billion $ BO deal is in the works.

Steve - do you happen to know if the $250k paid to US Capital Global is only a retainer?

I suspect that upon the successful negotiation of a transaction, an additional success fee will be levied. 

Can you confirm that US Capital Global may be entitled to compensation beyond the initial $250k retainer payment?

[mithril56]

Matlas - do you have any thoughts on what a normal fee structure for M&A advisory services would be? 

[matlas]

I can't say that I have an insight into that.

[mithril56]

I don't know either, but referencing a Financial Times article from 2017 it states:  Typically, sellside deal fees are set as a percentage of the company’s equity or enterprise value. The fee rate typically decreases as transaction sizes grow. For example, the average total fee in the FT study for transactions valued at between $1bn and $5bn was 0.92 per cent; for transactions between

[matlas]

I agree that the $250K US seems like a pittance, but like just about everything with LME there is more than meets the eye. There are all sorts of things going on behind the scenes that we do not know about.

[Drewman]

I second this. I'm doubltful Steve that you can provide us more information, but I would have to assume that there is some sort of a commission or bonus involved as well.  I would assume 250k is to render the service - with results leading to more money.

[matlas]

I am not so sure that is the case. If there were any additional fee involved, I would have thought that would have to be disclosed at the time of the PR. To omit that is, to me, somewhat misleading and incomplete disclosure,

[fatlas]

I have a ton of respect for matlas and his contributions to this forum - and should his $30 prediction come true will happily buy him both a beer and the bar it is served in - but on this issue I have to disagree.  I don't think the fee is either low or misleading / offside if a bigger commission is paid later on a deal - because of the very precise words used in the release:  the

[matlas]

Hi fatlas-I did not read the release that way, but based on what Steve wrote, obviously I was wrong.

[StevenHunter]

I've been told the $250k should be viewed as a deposit.   I think the PR has that info as well.  Treat it as a portion of the fee if there's a transaction executed that Laurion is satisfied with.   regarding the hunting season questions what I was told was that this is a different zone than has been drilled previously and the hunting seasons are not uniform across the