Laurion Mineral Exploration Inc. V.LME

Article

[StevenHunter]

https://uscapital.com/news/us-capital-global-engaged-by-laurion-mineral-exploration-as-strategic-advisor-on-capital-formation.html

Got some private messages about this posting from USCG.   Thought it best to repost it here so everyone can review it in one spot   

-Steve

[newbie8484]

So there goes our thoughts and hopes that they were secured as an independant advisor to review any sort of offer???

[matlas]

Not so sure what this means. Note the release also says: "These factors, combined with a healthy treasury, position LAURION as a prime acquisition for the right investor.”  

[Thebluestroy]

ya not sure....really dont like "financing initiative". Why would they ever need to raise more money if an acquisiton was anywhere in the near term

[gfdgdfgd]

My assumption is that prospective buyers haven't seen enough from LME which proves that the mine can be profitable and if that's the case, LME needs to advance the project to a point where that shows otherwise.  I am still long LME but I think you should settle in for the long haul. 

[Thebluestroy]

They'd be better off taking a lower offer and not having to attempt to make this into any sort of functioning mine, raising more capital (probably diluting us), and taking another half decade + 

[ahsineeg]

Wild Theory - there's going to be a management / board buyout of the company.  Nick resigned as he wasn't interested in taking part in it and had no insterest in committing his shares to the deal.  But private equity money is lining up to take LME private....they're going to offer us $4 / share (not the $8+ I'm expecting).  We get immediate liquidity at a massive

[NoRealPlan]

ouch that'd hurt $4? Not terrible... but not what Matlas was banking on.

[ahsineeg]

To be clear, I am not saying this will happen....I'm just spitballing an idea.  Going from $0.52 today to $4.00 IS a phenominal return and values LME around $1billion.  The fact remains we really do not know with any certainty how coversations are progressing behind closed doors. The positives I like are that we have millions of dollars in the bank (we aren't running out of

[StevenHunter]

Definitely not a plan that is being considered     

[matlas]

Thanks Steve for clearing the air. I don't know about you guys, but I am back to drinking my $30+ Koolaid! The management buy-out scenario is totally riduculous for all sorts of reasons. Cynthia wants to move on with her life, and not stay with LME forever. Furthermore, for all practical purposes, LME is already a private company, so why need MBO? On top of that, the $4 price, or even $8

[StevenHunter]

Just had a lengthy chat with Cynthia.   I want to be clear this is directly from her and not just my opinion (though I do agree totally)   USCG has been retained as LME's financial advisor ONLY in order to seek an ideal candidate for buyout.   There is no discussion about financing or borrowing with USCG or anyone else.   Cynthia went to great lengths to make

[Golden7777]

Thank you Steve!  That very much helps.  I'm not as savvy as some of the others here with regards to this type of process so any clarification goes a long way with me.  Hope you have a great weekend!

[newbie8484]

So I guess this means no one currently is at the table? The goal of retaining them is to try and find one? 

[matlas]

I don't think such a conclusion is warranted newbie. If there was no one at the table, Steve would not written "advancing". It cannot be advancing without a potential buyer involved.

[newbie8484]

However, Steve says he is not privy to that information? 

[matlas]

But, he would not write "advancing" without getting taht from "relable sources" newbie. He is not going to make that up on his own.

[GoldBelt]

No company will ever admit there's "someone at the table" UNTIL a formal offer is presented and reviewed. Seeking the "ideal candidate " may mean there are MULTIPLE offers and they will evaluate each offer for maximum value to shareholders. Offers could include shares of other companies/ shares plus cash/ or straight cash deal.  Cynthia is a geologist not a deal maker.

[Not2smart]

Since  Steve’s positive  post, when before it didn’t make sense. LME has been engaged with US Capital  for 2 months. Now US Capital does a press release.  Hmmmm maybe the deal is near and US Capital is using this time to promote there company.   Hey look Canadian exploration companies and others. LME used our services and look what we did for them.  

[matlas]

Right-looks to me like this is just PR for USCG! "Groundbreaking" financing-by definition, any financing of a mining company is "groundbreaking"!

[Thebluestroy]

If this is true, giddy up. 

[matlas]

Steve-please comment on this development in light of your comment just yesterday that: "Work on disposition is focused, regular and advancing" Is that no longer the case.

[matlas]

This all could be a negotiation ploy in terms of potential buyers. It shows that LME is in a position of financial strength where it can advanace the project on its own, if it has to, and is not desperate to sell. Maybe.

[Wmaver]

or maybe we all get to enjoy anthoer few years of posts on this forum....

[Thebluestroy]

Love y'all but I seriously hope not. Cynthia's gotta be damn near 70 now and there's a lot of family and friends probably looking to enjoy some semblance of wealth before they can't anymore.   im praying they aren't going to go down this road of trying to raise capital to start anything. I'll cut my losses at that point.  hoping it's a derisking step

[Lambosntendies]

I was talking with a friend of mine and he brought up the idea that this is possibly a power move on Cynthia's part.  maybe the buyer (or buyers) at the table were lowballing Cynthia and she said fine if you won't pay fairly we will go it on our own. If this is her financing mine development that's huge, and could signal to other the viability of the project and attract

[matlas]

YesLambo I sort of hinted at that too. It also fits in with comment in the PR about acquisition target. The bad thing about that scenario is that it could stretch this out for a while if we are dealing with a new player who has to start from scratch with due diligence.

[Lambosntendies]

That's true, let's hope if that is the case the existing potential buyer(s) gets a bit more serious and ponies up the extra dough! 

[Lambosntendies]

It is interesting that you bring up the idea of laurion working to "advance the project on its own". That's how I read this... by complete a "potentially grounding finance initiative"... is this their way of taking the next step to actual mine development? 

[matlas]

But, I still don't believe that they really want to do that.

[Lambosntendies]

I agree, but If they've come to the point where they can justify it as the next step then this all plays into further derisking the ishkoday and priming it as an acquisition target to a sr or family office looking to get a mine 

[matlas]

This also begs the question of why, if this is really some change in direction for LME, we have to learn about it in a PR from USCG, and not a PR from LME?

[Anthony13]

Seems like we keep getting close to the final chapter and something new keeps popping up.... still doesn't make sense about the formation of a special committee if they were not trying to sell the property

[matlas]

I agree Anthony

[newbie8484]

Unless they thought that US Capital was going to bring a buyer to the table, or had buyers at the table and they wanted to be prepared?  Perhaps this is a formality of USCG where they need to publish to be fair for all potential investors, but they already have a buyer/buyers in mind.  I know, im stretching it!

[Wmaver]

Steve put us out of our misery of guessing and goign down some dark paths.... Give us that sweet sweet company line that makes us all sleep better at night!!

[Bracko]

Steve how come you never added anything to the end of you comment. ie : great to be a lme share holder now or great time to buy in now . Are you disappointed with the announcement as well.

[Not2smart]

Steve,   Why did LME do press release 2 months ago about US Capital and it took US Capitial today to do a press release.   Doesn’t make sense 

[Golden7777]

Find all of it very confusing myself.  I'm sure there is a reason for it though.  Way above my level of understanding 

[Toddsquad]

... I think this is it.  US Capital is a big outfit.... this relationship with LME is news that is just being published by them now, through their lines... just another day in the life; it simply took them 2 months to announce the relationship 

[ahsineeg]

Agreed.  One of the very positives I took from the US Capital news release was... Lisa Terk, Senior Vice President at US Capital Global, shared her excitement about supporting LAURION’s flagship project, stating, “The Corporation’s Ishkoday Project possesses all the factors of production required to develop a large-scale open-pit gold mine. The cost of extraction, production, and shipping to

[Smitty64]

Really hoping $DAM, ahsineeg or Matlas can find a way to illustrate that there is still chance at a buyout in the short-term. Today is exactly 8 weeks since the PR announcement of a Financial Advisor, which is tied for longest period amongst all case studies presented ($DAM’s example). I was telling myself the current global events and the Canadian Thanksgiving holiday may have

[matlas]

Smitty-there is definitely a CHANCE of it, for sure. Can I guarantee? No. Curious to see what Steve can say. But, this can all be something arranged so that buyer can confidently acquire knowing that financing is in place to build the mine. A type of financial "derisking".

[matlas]

Here is one reason for encouragement. Steve's comment about the disposition being "focused, regular and advancing" was just yesterday. The arrangement with USCG would not have just been put together overnight. Leads me to want to believe that Steve's comments are still valid,

[Thebluestroy]

He's certainly earning his options at this point lol 

[StevenHunter]

Hi everybody, This is why I posted the article here.  Thought it better to have reaction/conversation here as opposed to behind the scenes. The announcement by LME a couple months ago was that USCG was engaged to support as a financial partner.  The special committee was created to work with USCG to that effect.  None of that has changed.    I read the

[CharlieBaba13]

Great read Steve!!! Thank you!!!   

[Not2smart]

USCG has been retained as LME's financial advisor ONLY in order to seek an ideal candidate for buyout.    Multiple buyers at table everyone. Which candidate will be successful in purchasing LME.  

[matlas]

Right-it also POSSIBLE that the PR from USCG might have been their way to try to "double dip", That is, they get a fee from LME for assisting with the BO, and then they try to get another fee from the buyer for arranging "groundbreaking" financing for the next stage.

[Primpage]

Another theory I have is that maybe this is USCG's way of gaining industry's attention before an announcement and then before that deal closes they wait for a second offer. Ahsineeg, mentioned on sept 14 that those investors who opt to sell their shares before the deal closes run the risk of missing out on another company comes in and bids higher. Perhaps this is USCG's way of

[cbrock75]

This deal is months away at earliest.  Done enough M&A in my own biz world to know there is way too much outstanding for this to be closed out soon.  Leaks would be happening and the stock price would reflect.  My two cents is all.  LME Long for sure though. 

[Lambosntendies]

"Way too much outstanding" please elaborate and be very specific as to exactly what is outstanding. 

[cbrock75]

When you see Cynthia posting and hashtagging #FamilyOffice #PrivateEquity this is clearly a sales pitch.  She is still in sales mode making it quite clear the lineup of potential buyers aren't at the table or have backed off.  I have no doubt there is going to be a sale down the road but recent indications (IMO) is that we are quite far from the finish line.  I would totally

[Lambosntendies]

Hmm I can't wrap my head around how Cynthia using hashtags that are copied and pasted from one post to another along with a public disclaimer and included in every single post and prospbly will be until an anlubcment is considered "way to much outstanding" but to each their own. I maintain a buyout is still close, too much going on right now imo. To each their own! 

[cbrock75]

To each thier own indeed.   You folk are torchering yourselves thinking the buyout is days away IMO.  She is in the field still hand stripping with staff.  Stock price is so low compared to what the speculators think this is going to sell for. Leaks would have happened if a deal was immenent. I own a significant amout of shares so I am cheering this on just like you all but

[Lambosntendies]

Excuse the lengthy response... She may be in the field hand stripping but I dont think shew is there near as much as it is made to look like. Shes been posting very consistently on linkedin, usually two posts a day monday to friday. Steve has said Cynthia herself takes most of the pictures thats why she isnt in them and also has said "These pics are all posted the day they're taken. 

[matlas]

Great post Lambo! However, none of this is really relevant because as Cbrock astutely pointed out, the fact that Cynthia has all of those hashtags on her Linkedin posts clearly means that there is no deal imminent. As we all know, if there were a deal imminent, she would definitely give priority to removing those hashtags that have been there for ages. What better use for her time! As a matter

[Lambosntendies]

Matlas, I gotta say I love your sarcasm and the humour you bring to this forum! It's a pleasure to read while we wait for a Cynthia to delete those hashtags! 

[matlas]

Sarcasm? What sarcasm?

[littledude28]

Matlas, I would love for you be right, just one of these years...

[StevenHunter]

of course she's in sales mode, that's her job!  She'll be trying to find additional buyers until the day she sells this     

[cbrock75]

The sales cycle has layers to it.... She is in more of the sales prospecting mode instead of the sales closing mode from where I sit and can tell. This isn't rocket science for anyone that has been in business.  Again, I hope this chat destroys me in the next few days with a BO announcement I can't see coming though.  #LMElong

[Sheerms]

Additional you say? lol. This Would I do want read more into! haha

[Sheerms]

Word* Why cant we edit posts!

[NoRealPlan]

Gold's at $1990... just sayin...