Laurion Mineral Exploration Inc. V.LME

USCG expiry

[CharlieBaba13]

Does anyone know when USCG's services expire?

[tuscanybound]

Go read the press release dated August 24, 2023; All info you need is there

[Twiggie]

Please help me cause I'm so stupid!! No seriously though.... I read it and I don't see anything. That's why I'm asking. I tried. I really tried. 

[CharlieBaba13]

You don't have to mock me twiggie. ...I don't see it. 

[Twiggie]

Just seemed like a dumb question. Call as I see.

[CharlieBaba13]

I just scanned it twice and I don't see an expiry date? Is there one? 

[Lambosntendies]

There is no set end date. If a transaction is not facilitated within a timeframe determined to be suitable by Cynthia and the special committee they can request the deposit back and part ways. 

[CharlieBaba13]

Thanks Lambo!! 

[GoldBelt]

Sunday morning coffee thoughts Now put yourself in the shoes of USCG. Would they take on this task, commiting time and staff (who need to be paid during this whole time)  without the real possibility of finding a suitor for LME , and risk leaving empty handed?  It's probably the case that USCG did their own due diligence to see if it was worth their time and resources. Think of

[Soldsign]

I would suggest this was not done by USCG "on spec". Rather, at the time that the deal with USCG was made, they already had a (likely Middle Eastern) buyer arranged or else the agreement would not have  been drawn without specifying an expiry date. Furthermore, the Special Commitee would not have been formed without a deal and a buyer in place"

[Soldsign]

 "Furthermore, it is likely that the whole reason USCG was selected by LME was the fact that this was either requested by the buyer or the fact that they had already secured a buyer. Looking at USCG's background, they have never worked on a deal of this size before and there would have been no other reason for LME to have chosen them"

[GoldBelt]

Those scenarios make sense and I agree with all your points:) I was scouring their website last night and could not find any transactions of the potential magnitude of  LME....also not many deals involving mining companies   Now why would  USCG be used vs the usual big mining M+A  advisors?   https://uscapital.com/transactions.php

[NoRealPlan]

Who are the big mining M+A advisors?

[GoldBelt]

https://www.mining-technology.com/news/top-10-ma-financial-advisers-metals-mining-sector-q1-2023/

[Thebluestroy]

Yea, to me it is an odd choice USGC is involved with no real relevance in the M+A sector and no deals anywhere close to what I assume an LME deal would settle for. Could also be why the timelines on a BO are completely different from other case studies people have posted. Will be curious to the see the outcome 

[Stepinup]

I'm not an expert, It was said previously that USGC was brought on as an advisor, evaluating fairness of the deal. To work with the special committee. I don't think USGC is a broker, bringing a buyer. It says right on their website the size of deals they specialize in. It's not in the billions.  I also think there are laws/regulatuons with companies buying resources in

[GoldBelt]

Doug can you explain the reasons why LME chose USCG as a financial advisor when this company has never worked on a deal of the magnitude / potential asking price for LME ...AND USCG does not list many deals completed in the mining sector.   (it seems that LME has avoided anything of the typical  jr mining route ...no trade shows/PDAC....no financing or dealings with the usual bay st

[ahsineeg]

GoldBelt - if I had to theorize why LME Special Committee retained the services of USCG it would be because John Covello (LME Director and Special Committee member) has an existing relationship with them.  Read John's bio in the LME Management Information Circular from Oct 13, 2023 available on Sedar+  -- John Covello has been the Chief Executive Officer and the President of

[Jimo82]

I believe you're 100% correct, metals house will play an important role with the next steps for LME. John is an integral part to the story and like i said before, the only important Director on the Board that we should be concered with. 

[GoldBelt]

Ahsineeg I always appreciate your input and thank you for connecting the dots so to speak. I like your theory but have some questions for anyone else to answer and provide their input and comments but especially Doug (work for those options!): Now considering: TORONTO, May 22, 2019 /CNW/ - LAURION Mineral Exploration Inc. (TSX.V: LME and OTCPINK: LMEFF) ("Laurion"

[DAM$]

As to the why the stockpile hasn't been monetized is likely the need of a processing plant to  get the gold out of the rock. Metal House will have first right of refusal to buy the gold produced but they do not produce it. That pile won't be monetized until there is a processing plant or one sitting idle waiting for truck loads of rock to be delivered. It would take about 24 trailer

[GoldBelt]

LME doesn't have to build its own processing plant in order to monetize the stockplie. Loading in onto trucks and arranging and negotiating a processing deal with an outside processing plant is not out of the realm of possibilities, especially when we are a brownfield project/former mine site with easy road access.

[Nuggetz]

Metal house Inc will be apart of  the BO when it happens and then deal with the stock pile. 

[DAM$]

I didn't say that they can't truck it. I went down the path of investigating the capacity of semi truck trailers but is there a processing plant with extra capacity?  Any mine in the area is processing what they have at full capacity.  I am sure that if there was an easy option to process $20 million into the bank account, Cynthia would have done it. 

[DouglasGVass]

I will find out the answers to these questions Goldbelt. No need for the snarky comment. Let's be respectful and remember that stock options are not "free money" but are simply an opportunity for me to purchase more LME stocks into the future at a set price. If my options were exercised today they would expire worthless as the current price is less than $0.45. I am grateful for this

[GoldBelt]

No snarkiness and disrespect intended. Just going with the ongoing theme of us on our forum of making LMEs investor relations "work for those options" by answering our numerous questions....heck we are one of the most busiest forums on LME!  :) Thank you for looking into my questions  

[DouglasGVass]

The relationship formed between LME and Metals House is a strategic alliance that goes beyond the surface stockpile agreement.  This agreement was formed with the intention of monetizing the stockpile but after DRA did their review it didn't make sense on a cost basis to bring in all the equipment to process the 190,000 tonne stockpile.  Cynthia is also waiting for the permit to

[DouglasGVass]

Here is the answer I received: Fair question..we chose to deal with them based on their solid relationship with Metals house Inc and their client base being worldwide. We are their top client based in the dollar value so instead of being a small fish in a big sea we are a big fish in a small sea! 

[Lambosntendies]

I just wanted to highlight something from Dougs post:  "We are their top client based in the dollar value so instead of being a small fish in a big sea we are a big fish in a small sea! " This is a great statement for two reasons.  - The largest transaction they have posted is $500M. I know the majority of us are expecting a lot more than $2ish a share but at the absolute

[DouglasGVass]

Great observations Lambo!  Fantastic post!!  I couldn't agree more.  Thank you!