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Bullboard - Stock Discussion Forum Woulfe Mining Corp WFEMF

Woulfe Mining Corp is a mineral exploration company. It is engaged in the acquisition, exploration and development of mineral properties.

GREY:WFEMF - Post Discussion

Woulfe Mining Corp > Big Fish - Little Fish
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Post by mercurysmith on Oct 24, 2012 10:27am

Big Fish - Little Fish

It has been nearly 2 weeks since I last posted.  I then said the big fish will not be feasting on Woulfe until the $35M from IMC is advanced (because that is the key to the next big de-risking of this penny stock).  I pointed out that if the s/p goes up or down a couple of cents, it was no big deal to long term investors--it only represented the little fish short term traders who were not making decision based on company fundamentals, but rather, on playing the general economy and the ups and downs of the market as a whole. 

 

All of those comments are as true today as they were two weeks ago.  Chrisp6712, I agree that the photos, for the most part, do not show much proof of any change of company fundamentals.  Almost all of them were taken on the opening day, with tables still near the heavy equipment, and grass on the mountainside consistent with no overburden yet being removed.  Note the big electrical power lines in the upper left of most of the photos, which helps to orient the photos.  

 

The one exception is photo #1.  It was obviously taken a few days later, showing the initial overburden having been removed, and the opening mouth to the decline constructed.  Remember, the initial blast was Oct 8th, so that photo #1 looks to represent a weeks worth of work.  The value of that photo is not the weeks worth of work, but rather, the fact that Woulfe is moving ahead with the 60 days of work to build the decline into the mine even before receiving the $35M from IMC.  I find that to be the most significant fact in the past two weeks.  It helps me to have a reasonable belief that Woulfe has every confidence that the IMC money is a virtual certainty in the near future.  That helps me know it is that much closer to being more de-risked.  I am convinced Woulfe would not have started that capital expense unless the IMC funding is to follow soon, given Woulfe is not that loaded with cash.  So in short, I say thank you to the people at Woulfe for providing that photo #1.  

 

Good luck to all you longs.  Ignore the day to day ups and downs which have no significant volume.  When the big fish come feasting with the IMC $35M news, the volume will be in the millions each day for a few days, not this peanut volume which is able to change s/p a penny or two with no change to company fundamentals.

Comment by chrisp6712 on Oct 24, 2012 5:52pm
I may be mistaken but I assumed the IMC money was assured with their completion of the due diligence results on the Sangdong project. Isn't the next big 'hurdle' finalizing the $150 million US financing from Shinhan Bank? Do you think there will also be some investment from Kores as previously discussed by the company?   Thanks,   Chrisp
Comment by clk_vested on Oct 24, 2012 8:04pm
The IMC money is "assured" in theory, but judging by the share price, the market isn't treating it that way. I think a lot of people are waiting to see the cash. Because then and only then does this show truly get on the road. Most of us feel that the 150 M from Shinhan Bank is also assured, but likely not until IMC ponies up what they have promised.
Comment by Majormac79 on Oct 24, 2012 8:23pm
CLK_VESTED "Most of us feel that the 150 M from Shinhan Bank is also assured, but likely not until IMC ponies up what they have promised." I believe it is the other way around, IMC is waiting on the Shinhan Bank to give the thumbs up from it's DD before all the money flows at once! UPWARDS of 185million dollars!
Comment by mercurysmith on Oct 24, 2012 9:01pm
Chrisp, there was a time many moons ago when the agreement was with Korea Zinc, and that company completed its due diligence and everyone though it was a go.  Problem was, when it came time to advance the money, the deal collapsed.  I am not saying that is the case with IMC.  In fact, I am very confident that we will hear good news from the IMC front soon.  I am just saying ...more  
Comment by TechOne on Oct 24, 2012 10:02pm
Deal with Korean ZInc, if I remember was quite different and Korean Zinc did not really have the time to do DD and  WOF was not far enough with their drilling and feasibility study..  Korean Zinc had a deadline where they had to do the deal or pass and they passed on advise from their Consultants.. Once the drilling and feasibility was done, Korean Zinc was willing to do the original ...more  
Comment by Majormac79 on Oct 24, 2012 11:29pm
Korea Zinc had somewhere around a 3-5 month period to get the 40%deal with Sangdong. At that point Woulfe had the money to keep it going for a while from KZ infusion. KZ backed out or was left hanging because they had to renegotiate a deal since the original deal lapsed and surprise, surprise IMC was there a couple months later with their official announced JV interest which ...more  
Comment by mercurysmith on Oct 25, 2012 12:10am
TechOne and Majormac I agree. I attach the main historical news release where Korea Zinc ininially indicated they were satisfied in the interim with their dd.https://finance.yahoo.com/news/Woulfe-Mining-Update-on-Korea-iw-3375122434.html That said, my main point is that even though I am satisfied that IMC is all in, the market seems to be waiting for the $35M to be paid by IMC, before being ...more  
Comment by biznotstock on Oct 25, 2012 5:37am
Everyone's right but it's not just the $35M from IMC. We have to deliver as well... Section 2.03 "Subsequent Contributions" of the JV agreement states that Woulfe will have to deliver up to $15.75M (+ IMC up to $19.25M) at the Subsequent closing (official signing) to the JV company. "...deliver to the Company at the Subsequent Closing, in cash by wire transfer of ...more  
Comment by biznotstock on Oct 25, 2012 5:42am
Woulfe asked to renegotiate: NR July 14th 2011https://www.woulfemining.com/i/pdf/news/2011-07-14_NR.pdf "Woulfe Mining has requested a new proposal from Korea Zinc that reflects the change in the Company’s value based on these factors."
Comment by CJHallee on Oct 25, 2012 7:42am
I could be wrong here but didn't it read that WOF had to contribute 15.75m which could come in the form of a loan from imc , to be paid back by cash or future tungsten production. If so, we wouldn't need bank financing first.>
Comment by CJHallee on Oct 25, 2012 7:49am
Upon further reading my previous post looks correct. The 15.75m is for the apt jv and it could come in the form of a loan from IMC. The 35m is for 25% of sangdong and should be forwarded before all else.>
Comment by biznotstock on Oct 25, 2012 8:18am
Seeing as though Shinhan Bank has agreed to loan us the money at a good rate, IMC would have to offer us something better in order for us to take it. The MOU with Shinhan was a high amount which I presume was done in order to include the JV contribution and the SMC tungsten production. I'd rather wait on Shinhan than wait on IMC to offer us a loan...took long enough for the DD.
Comment by mercurysmith on Oct 25, 2012 10:27pm
Biznotstock you make a great point-the MOU for the higher loan amount likely is to cover the JV contribution.   Regarding the never completed deal with Korea Zinc, one thing unique about it is that they ended the relationship on good terms (unlike many a couple that separate) and Koreas Zinc still is a major shareholder.  Many of us have speculated that the reason the two are still on ...more  
Comment by jtsmith on Oct 25, 2012 11:15pm
I think the semantics of the NRs also provide a clear distinction between the Korea Zinc and IMC deals, which supports the posts made by many members on why "this time it's different."  The wording is very clear on the Korea Zinc NR that they had only completed the initial phases of the DD, mostly because more time was needed for drilling and feasability, as mentioned by TechOne ...more  
Comment by TechOne on Oct 26, 2012 12:02pm
If I recall the original terms correctly, all IMC has to do is match the terms and they have the first crack at it..  I could be wrong.. Too lazy to read it up again.. :o)
Comment by StockExpertPro on Oct 26, 2012 3:59pm
Woulfe will have the option to finance its 45% ownership of the APT joint venture through an up to CDN$15.75 million loan, to be made available to Woulfe by IMC, which may be repaid in tungsten concentrate produced by Sangdong. Alternatively, Woulfe may inject equity directly into the new APT joint venture without taking any loan from IMC.https://www.woulfemining.com/s/NewsReleases.asp?ReportID ...more  
Comment by Majormac79 on Oct 26, 2012 11:28pm
That is right tech one, imc can meet or beat korea bank offer
Comment by StockExpertPro on Oct 27, 2012 11:30am
That is incorrect! Read the press release IMC must beat the bank offer or WOF will reject it. Why Woulfe Mining say yes to the same terms or rate without getting a better deal? Woulfe may inject equity directly into the new APT joint venture without taking any loan from IMC. This means IMC must offer a better interest loan rate then the bank. Woulfe will have the option to finance its 45% ...more  
Comment by geologyfella on Oct 28, 2012 2:16am
are you on dope?
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