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From the SEC Filing:
"5. Argonaut is responsible for paying all land taxes, annual concessions or permit fees and the monthly lease of US$1,000 during the term of the Agreement. In addition, prior to July 6, 2016, Argonaut must expend a minimum of US$600,000 in expenditures relating to drilling Reverse Circulation and/or Core or a combination of both drill holes in relation to the Mining Concessions."
Is the "mining tax" you're referring to a "land tax"? If so, Argonaut will pay it.
Dino
I don't know what it will be, but the cost won't actually be zero. Mexus will still have management (Paul's gotta draw a salary someday), an office staff, an auditor of Newco's production, etc.
So, IRR will be 20% / peanuts. A big number, but finite.
Dino
As I recall, Anatabloc used to be manufactured in Massachusetts. The sales office and Tier I help desk was in Connecticut and until very near the end, HQ was in Virginia.
Dino
Could the last line of De Joya Griffith's letter give a clue as to why Mexus changed auditors? In accounting, the details are important - especially in SEC filings.
Dino
Exhibit 16.1
August 5, 2015
Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549
Re: Mexus Gold US
We have read the statements that we understand Mexus Gold US will include under Item 4.01 the Form 8-K report it will file regarding the recent change of
auditors. We agree with such statements made regarding our firm.
Very truly yours,
/s/ De Joya Griffith, LLC
De Joya Griffith, LLC
Certifies Public Accountants
Of course it is. I bought some this morning at $1.06.
Dino
There's one on iHub at http://investorshub.advfn.com/Argonaut-Gold-Inc-AR-19037/
The symbol is incorrect - for an oil & gas company - but the subject is Argonaut Gold. Not a very active board.
Investor Village has an even less active one at http://premium.investorvillage.com/smbd.asp?pt=m&mb=18800, but at least they have the symbol correct.
Dino
Yeah. I offered .03: they sold it to me at .0298.
Dino
Sounds good to me.
Hell, sounds wonderful!
Dino
Paul would have to bend the rules a little, I think. (my emphasis)
6. At any time prior to December 31, 2018, Argonaut may exercise the option, provided that it has incurred minimal expenditures on the project of US$5,000,000 and made cash payments to Mexus equal to US$950,000.
Argonaut could easily give Mexus the $950K, but spending $5 Mil in 5 months? Remember the old Millionaire TV show? Spend a $million in a year to get another to keep?
Maybe fund an account for development with time requirements and controls...or sumpin.
Dino
KC,
I assume you were typing your post when TML posted his explanation. He and I seem to agree as to the terms. It makes no sense to use net profits since that would mean that Mexus was actually paying half of the productions costs, funded by a short term, non-interest bearing note.
As to the cost of operation? I think Argonaut is leaner and meaner than Fresnillo and the grades are higher, but we'll have to wait a while to see that.
I'd like to see EA's best guess as to how they're going to spend the $5 million on mine development. Where will the first production come from? My guess is that the underground mine will not be first. But, aside from that, what processing method is fastest/cheapest to set up and use?
Dino
Where are you getting your numbers? According to Argonaut, their mine closest to Mexus is La Calorada. http://www.argonautgold.com/_resources/factsheet/factsheet_March_2015.pdf
Their cost of production for last year was $730 - $750 per GEO. They are predicting lowering that cost to $600 - $650 this year. However, that is irrelevant to us.
"Once the option is exercised, Argonaut will hold an 80% interest of Newco and Mexus will hold a 20% interest in Newco. All mining operations will be funded by Argonaut at no cost to Mexus."
That means that, if gold is $1300/oz, Mexus' share will be $260.
Dino
My point, exactly. Why waste the money when not needed/wanted? Hence, PRs, when, as and if issued, will come from parent companies.
(Hope it's when, not if.)
Dino
Since all PRs are listed by trading symbol on Yahoo, Dow Jones, GlobeNewsWire, etc., where would you expect to find a news release from Newco?
To establish a company in the US takes 5 minutes and an internet connection. How long that takes in Mexico? I've no idea. To be publicly listed with a trading symbol in the US where we would be likely to find it? Several months to several years and, last I checked, a minimum of $50,000 in legal fees. Probably more with SOX requirements.
Dino
I think it just covers the method of synthesis. However, if you can't make it, you can't sell it, so Big Pharma would have to buy it from RCPI.
Dino
Will wonders never cease?
Glad to see some movement. I'd given this one up for lost.
Dino
Since then, the placer has been doubled in size, moved up the hill to take advantage of gravity and increased the water flow. We'll have to wait to see what production numbers are for the new configuration, but I'm sure they're going to be much better.
Dino
Earnings up more than income. That's a very good sign. Increased production capability in the next 6 months. Also very good.
Isn't about time to increase the dividend?
Dino
Next time something like that happens, call your local office and ask them to place the order. Since you have 3 days to produce the shares before settlement, they should be able to do that.
Dino
Can't speak for TDA, but Scottrade will charge that "mandatory reorg fee" on any excuse. In this case, the CUSIP number changed, so they had to do a universal find and replace on their whole data base. That must have taken at least 30 seconds.
Surely that's worth several thousand dollars in fees.
The one that really p%sed me off was when they charged me a $20 fee to credit my account with $0.10 - the cash from a merger of an old shell still in my IRA.
Dino
And down 10% already.
Unless you have some really good news, a reverse split is almost always a bad idea.
Dino
I bought 100K on the 1st and 2nd for about .018, average. Haven't done anything since 'cause I'm out of cash. I had to send everything left to my governments.
Shame, too. Paul would have put it to much better use.
Dino
I take it you're unfamiliar with restricted stock.
Dino
That's about a 16.67% return on our original investment, isn't it? I think we spent $3 mil cash and a lot of sweat equity. (Paul and crew that is.) That's 5.5%/year, compounded, and then some. Not too shabby.
And we still own it.
Dino
The deadline in negotiations with Iran is in a couple of hours. They've already announced that they're going to ignore it. Yes, the contract is the contract, but it's not an unusual tactic. They probably feel their risk is the $400K or so up front. If they think there's enough pressure on Paul to make him accept half the cash, it's worth the risk. Worst case in their opinion is they cough up the four mil. If they cave fast enough, they probably figure Paul would rather be done with it than sue for damages.
Risky? Maybe, but remember the culture differences. It's called the art of the deal.
Dino
I find it hard to believe that Atzek couldn't take a mine that was producing gold a few months earlier and produce more than $4 million in a whole year. They should have been able to get that much just by spraying some more cyanide. I seem to recall that there were pads set up that we hadn't even started leaching.
I agree with KansasCrude. I think this is a bargaining ploy. I doubt that Paul will let them get away with it.
Dino
Thanks, I've still got a lot to learn.
The only problem with that theory is the cost of processing when gold's up to $5K. If gold is $5000/oz, what do you think the peso will be worth? If it's not worth it now, it probably won't be then, either.
From Kitco a few minutes ago:
http://www.kitco.com/kitco-gold-index.html
Did gold really go down 10.50?
No. It actually went up 1.70 in real terms, but US Dollar strength makes it appear to have gone the other way.
Dino
Changing the subject slightly, cause I'm close to being a big shot investor. (Only off by one letter.)
Is the "waste" ore from the placer process worth saving for the leach later on? It seems like we're only taking out the big chunks. Isn't there still a lot of gold left in the part that washes off?
Dino
This is what we've been waiting for.
Lightlake Therapeutics Inc. Announces Fast Track Designation From The United States Food And Drug Administration For Intranasal Naloxone Treatment To Reverse Opioid Overdose
Dino
The problem with that is the shares and warrants are not "registered". They would be restricted, both from immediate sale and possible ownership. You have to be a "qualified" investor in order to purchase them. Qualified - a millionaire, income this year of $300,000 or $200,000 for the last two years.
A lot of current stockholders wouldn't meet those criteria, so RCPI would be in hot water with the SEC. Oh yeah, most IRA's and such can't hold restricted stock. One more reason.
Dino
That's a reprint of the 12 January release. They must be slow readers.
Dino
Thanks, Haysaw.
You might be interested in Lightlake. They're working with addiction extinction, using the Sinclair method. They're finally getting some revenue from sale of their dispensers to others. Their own Phase II was successful, but there's still Phase III to pass. The interesting thing is that they've been able to break the barbiturate habit for years using David's method, but the government wouldn't allow it. Now, the government is testing it.
Dino
A link, please. I have a friend who has a patented atomizer being used for drug delivery. His company (LLTP)would be very interested in this project.
Dino
Yup. Click on name and look at the options on the left. As a free member, I think you're limited to 3 ignores, but you can swap.
Dino
Even at current rates, the interest on $4 mill is significant. I'd wait until the last minute. I'll bet they will too. The money is due in March. I don't remember whether it's the first or the 31st. I'm sure Paul remembers.
The only information I've heard is that Paul thinks that they're doing well. I assume that means that they are producing gold. As I recall, the production costs were pretty low, so it shouldn't be a problem for them to come up with a measly four million.
Dino
The difference is time. If the joint venture happens, then the fun begins immediately. If it falls through, then it will just take a bit longer. At this point, the joint venture may not even make sense.
The placer should be in operation soon, bringing in, we'll say, $50,000/week on average. That will fund the beginning of building the MC setup. You can move a lot of dirt for $50K. In March, Atzec and company should come up with $4,000,000...in cash. That's enough to develop everything. The tax money you memtioned is about another 1/2 mil.
So, if it goes as planned, we lose 3 - 4 months. That's why I question if the JV is still a good idea. It is a sure thing and the $4 mil may not happen, so Paul may decide to play it safe.
If neither happens, it will take a lot longer, but it's still doable. Remember, there are other, cheaper but less efficient ways of separating ore. Even if we only remove 50% of the gold, that money will pay for the Merrill Crowe setup. The nice thing about ore? It doesn't disappear. You can reprocess it again and remove the remaining precious metal. One of my better investments was in an old mine in Crete. They were reprocessing the original tailings pile. Those tailings were one of the richest ore bodies known at the time.
I hope that answers your question.
Dino
Yeah. I've got mixed emotions.
The nice part is I win either way.
Dino
I'm actually hoping the public doesn't react until after the 1st of the year. I have to make my RMD, and want to withdraw as little as possible from my IRA and also want to do it by moving as yet unappreciated Mexus stock. That way I get to keep the capital gains, not ordinary income status. I do this every year. Lots more money in my IRA, so I buy there and move it out each January.
One of these days, I hope that's going to stop working.
Dino
Figure a time line rickybobby. If Paul and whoever signed a Letter Of Intent today - the 2nd - what would happen? The last time Paul announced an LOA, the deal fell through when the details were put on the table, so I don't think we'll hear anything formal until the ink is dry.
Agree to agree - 12/2
Lawyers to draw up agreement - 12/9
Accountants for "whoever" - 12/12
Lawyers again - 12/19
Paul T. Signs - 12/20
"Whoever signs - 12/22
Paul D. sends out a PR - 12/23
I'm an optimist. It frequently takes more than 30 days. I just said 3 weeks. But, "It's beginning to look a lot like Christmas." I hope, I hope.
Dino
Yes, and on high volume too. That is two...shares today.
Dino