Woulfe Mining Corp WFEMF

today's announcements

[74volfram]

from Woulfe announcement:
Woulfe announces that, further to its press release dated January 27, 2015, the board of directors of the Company has unanimously determined to terminate the letter agreement dated January 20, 2015 between the Company and Almonty Industries Inc. ("Almonty") and the proposed merger transactions contemplated thereunder. The $150,000 bridge loan provided by Almonty will become due on April 30, 2015.

from Almonty announcement:
Almonty announces that it has terminated discussions with Woulfe Mining Corp and that the non-binding letter of intent to combine the businesses of the two companies entered into on January 27, 2015 and extended on February 13, 2015 has been terminated. Lewis Black, President and CEO of Almonty, commented "It is unfortunate that we were unable to reach an agreement with Woulfe but we will continue to consolidate global tungsten mining assets outside of China".

Playing with clues and some slight differences in the announcements:
- letter agreement was terminated by the Woulfe BOD decision
- Almonty "terminated discussions" - presumably subsequent to Woulfe action
- Almonty states it is unfortunate that an agreement could not be reached. looks like Almonty wanted the merger to happen
- Woulfe does not color its decision. looks like Woulfe is not unhappy the merger is off.

I do not think another suitor is very likely. So my speculation is that a large insider objected to the deal. Fund investors may not have minded the Almonty takeover too much.  But IMC would have objected strongly, because it would have caused the off-take to possibly go to (non-Korean) competitor GTP, as pointed out this morning by Flow23.  This may cause problems in Korea, so Dundee was prompted to quickly reverse course on the merger. On the other hand for all we know, the merger could have been engineered and solicited by Gaucher from the beginning as Plan B to force a move from IMC.
My further speculation is that a BOD does not terminate a merger agreement (particularly in this market) without having a better and/or more solid deal already secured.

[JCMO2013]

Thanks for the update this is great news that merger with Almonty is off implies more than us small retail investors were not happy with buyout of 8 cents.  

[TechOne]

My question on reading the release was, what was the Board doing before the company released the LOI ?? Was the CEO acting on his own without going to the Board ?  It boggles the mind a bit and raises doubts about the CEO and Board's control since it is already stacked in any case..

[kilgor]

Regardless of the reason, I think the cleanup of the Board and management should be given some consideration. 

[kilgor]

Regardless of the reason, I think the cleanup of the Board and management should be given some consideration. 

[chizzles]

Just to get some opinions, why do you guys think the SP is trading at .065 when prior to the announcement that we disliked it was at .10? Isn't this what we all wanted? Just making conversation.

[lonade]

Chizzles, as written before I do consider this a good step not to accept the merger under these conditions. Although the very confident tone of the WOF NR did surprise me. I consider this an indication that there will be further key NR's that will provide us the explanation on why the board was in the position to turn down the proposal of Almonty. As someone wrote before, if we would have had

[edmed]

others must be wondering now as I am about where the money is going to come from to develop this project money is very tight these days still holding my shares and have added a horseshoe to my Rabbit's foot.

[chizzles]

I still feel confident that there is money, we just haven't been told yet. We are the ones who cancelled the merger worth 0.08, just have to be patient but I would think that it shouldn't take too long to find out (I hope).

[Markidesad]

Quite agree with Volfram. We are only small fishes ( and mostly divided ) but I would like to know what the @large investors had to do with that decision. For instance Korea Zink , they had surely something to say on the matter.