Woulfe Mining Corp WFEMF

What's wrong with this picture

[sober_thoughts]

Some bullboard participants, myself included, are starting to show some frayed nerves.  Unfortunately, the nervousness is not unsubstantiated.  Signs indicate that something isn't quite right. 

Starting a couple years back, Korea Zinc was supposed to be Woulfe's dance partner.  Despite some rumours that Korea Zinc was short of cash, I checked their financial records.  In 2009, net profit was $364 million USD.  In 2010 and 2011, the net profit was $462 and $694 million USD respectively.  The source is the Korea Zinc website.  Korea Zinc was willing to buy equity at .30 share when tungsten prices were $130/mtu less then todays market.  This was before a bankable feasibility study.  Before all of the additional drilling.  Yet now,, after all that time and with a supposed resource, we get diluted at .20 cents.  It makes no sense.  You think Korea Zinc, having had a member of the Board, having done significant due diligence, would jump at .20 cents a share. 

I have similar concerns with IMC.  By all accounts, IMC made a good business deal.  WOF did what it had to as a junior to get the necessary financing.  Woulfe has repeatedly stated that IMC was paying the equivalent of .55 cents per share.  Yet months later, we need to go to market for .20 cents?  Again, it doesn't make any sense.

Almost four months after the TetraTech bankable feasibility study, IMC is on the fence.  So much so that it isn't willing to pick up equity or extend any additional loan.  The second dance partner who doesn't seem to want to seal the deal.  This makes me very nervous.  

What I do know is that Woulfe has a serious cash burn.  The $5 million received from IMC is gone (in around 5 months).  That means the extra $5 million we should raise will last a maximum of 5 months.  Considering IMC has 60 days with the agreement, that means we at most have three months before we need further dilution.

[Majormac79]

I believe IMC's delay has everything to do with the world economic events. Korea Zinc didnt have synergies to make the tungsten deal as sweet for them. I would like to get some news as to what that 5 million has accomplished for us be is drill results or equipment.

[biznotstock]

  Regarding the "short on cash" idea which has been posted a few times since the PP announcement... It's important that we all be aware that there are front end fees (paid in cash) to commercial financing deals like the one we signed with Shinhan Bank. Furthermore, we pay for the bank's DD on the project as they must hire engineers, consultants, etc.    

[sober_thoughts]

Your explanation that the "delay has everything to do with the world economic events" is possible.  So let's examine this as a possiblity.  While long term tungsten prices forecasts seem relatively stable, IMC may have indeed seen something that has changed its views.   Fair enough.  Following that arguement, do you reasonably expect IMC's new view of the

[ark88]

sober_thoughts; I concur with your well thoughtout rationale, however, my conclusion on this, as I've posted earlier, is that they may want to renegogiate the terms of the deal. In the end it all comes down to price. My conclusion is soley based on the small dollar amount of the PP. Unless management is totally incompetent, the amount of the PP points to the need for cash till the 60 days has

[Vantheman7]

"Unless management is totally incompetent, the amount of the PP points to the need for cash till the 60 days has expired when the IMC cash is forwarded. That is as good an explaination as any." Two clarifications required for two NR's in a few months plus a retractment, restatement, reissue of substantial information announcement recently, forced on the company by the authorities

[sober_thoughts]

Ark88, Your probably correct about the ongoing negotiations. It would be hard to believe that WOF is trying to change the terms of its contract.  It openly talked about the good deal, great partner, and that everything was on track.  Therefore, I think almost everyone would agree that the hold-up with negotiations, if that is indeed the reason, is with IMC.   The question we

[Majormac79]

That $5 million PP would be able to fund Woulfe until the BOK loan DD decision with the MOU. It's possible we are going to develop Sangdong mine while keeping 100% ownership.

[Majormac79]

buffett-s-burlington-northern-plans-10-30-year-debt-offering   As long as we get the money off the bank of korea we can consider IMC just a customer, keeping 100% ownership if they want to hold off that long.

[Majormac79]

https://www.bloomberg.com/news/2012-08-16/buffett-s-burlington-northern-plans-10-30-year-debt-offering.html

[StockExpertPro]

If IMC wants to play hardball then the only thing the WOF CEO Brian Wesson can do if IMC decides to try and bankrupt them is to sell the mine to IMC's largest and most hostile competitor, North Korea. I'm sure he could easily sell the mine to North Korea before the company goes bankrupt and make the WOF shareholders a decent profit.

[StockExpertPro]

If IMC wants to play hardball then the only thing the WOF CEO Brian Wesson can do if IMC decides to try and bankrupt them is to sell the mine to IMC's largest and most hostile competitor, North Korea. I'm sure he could easily sell the mine to North Korea before the company goes bankrupt and make the WOF shareholders a decent profit.

[Majormac79]

That must be a joke. lol South Korea isnt going to sell a strategic mine to the NORTH!

[AAA-1]

ha!  likely too young to remember the Korean war..not to mention tensions today.

[biznotstock]

StockExpertPro aka: PennyStockInvestor (i-hub) I was really on the fence about ignoring you or not, but you just earned it.   North Korea...really!?

[StockExpertPro]

I really have no clue what you are talking about. Are you delusional? Look up my id on i-hub it is Stockexpertpro