Bullboard - Stock Discussion Forum McChip Resources Inc V.MCS

Alternate Symbol(s): MCCHF

McChip Resources Inc. is a Canada-based company, which invests in petroleum interests in Western Canada, as well as direct and indirect interests in minerals. The Company is engaged in the natural resources industry. The Company holds indirect interests in minerals and petroleum assets in the form of marketable securities and investment in other companies which are listed on recognized... see more

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TSXV:MCS - Post Discussion

McChip Resources Inc > BIG NEWS -- $3 million sale

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Post by ekim on Nov 05, 2017 6:42pm

BIG NEWS -- $3 million sale

Totally missed this news up until now.

McChip just sold off its entire Potash Royalty to $ACS for a $3 million cash payment plus annual payment sof $500K for 10 years.
Considering the market cap sat at $2.4 million a week ago..I would say it 100% a great deal.

They willl still have some other assets...I'll have to check out the quarterlies.

Nice to see something get valued fairly beyond what the market is making a horrible job at.

EKIM

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Comment by ekim on Nov 05, 2017 6:51pm

So...doing a bit of research. The Book value of investments they have (not including the potash royalites) and after you subtract current liabilties sits at about 55 to 60 cents per share. This transaction generates 53 cents in pure cash plus about a 9 cent payment for the next 10 years. So...the book value sits at about $1.10 with an incoming income stream of 90 cents over 10 years which ...more

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