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Would the TA have an exact date in which the shares were increased? If it was on the 19th, it would certainly be a reasonable assumption.
It generally isn't in the best interest of the company to release release extremely important information after the close on a Friday. The hype that it would potentially create would likely be reduced by the time trading resumed on Monday.
Just for the sake of argument, let's assume that the company is worth the $13million that Mendina believes the company is worth (from 8k 10% of company is worth $1.3mil).
Let's further assume that the company fully dilutes to 1.49billion shares authorized. At $.0087 pps we get a market cap of $13mil.
So with full dilution and a value of $13 (and yes this value could be argued) we still get a pps nearly 3 times higher than we are currently at. This leaves quite a bit of room for the pps to move even in the event that the company fully dilutes.
Just as a side note you could assume that SIRG gave a 100% premium for the purchase (SIRG believes the mine is worth $6.5mil) and you still get a pps nearly 50% higher than it is currently ($.003 at time of writing).
On a speculative note, if there is Magnesium in the tailing piles, I would think that it is a fairly safe bet that there is also Mg in the ground as well. I would not use this in any way to estimate the value given there is no information on the costs to produce, the additional capital investment that may be required to process Mg, ect.
I know that Lmcat was asking about the size of the tailings piles. From the MDA portion of the latest 10K
Copper grade ranged from a minimum of 0.16% Cu to a maximum of 0.43% Cu with the average being 0.36% Cu. The report also estimated the tailings to contain approximately 1.2 million tons of material.
with .36% copper that results in 8.64 million lbs of copper
with .63% magnesium that results in 15.12 million lbs of magnesium
with .32% zinc that results in 7.68 million lbs of zinc
There are slightly more shares outstanding per 14c 202,456,178 shares of Common Stock and 1,000,000 shares of Series A Preferred Stock were issued and outstanding
Never mind, I misread your post. Feel free to delete this post.
The most interesting thing that came out of the release was the Contingent termination clause
1.4 Contingent Termination. Unless the Board of Directors has received one or more commercially reasonable bona fide offers for investment in the Company or otherwise available for moving the Chloride Copper Mine into production, by debt or equity, totaling in excess of Five Hundred Thousand Dollars ($500,000 U.S.), cumulatively or singularly, on or before June 30, 2012, and unless such offer(s) has been accepted and the transaction(s) closed by September 30, 2012, this Agreement shall terminate and no party shall have any rights with respect to the other.
This clause clearly states the company believes that financing would be in place no later than July, and likely believes that it will be secured much sooner than that.
I also wanted to weigh in on the pricing. Archer is sitting on a pile of convertible notes (something on the order of $80k) that he could have very easily cashed in on below .001 (could be as low as .00048) and flipping that even at .002 would be a substantial profit. So we could easily see substantial profit taking on any big moves, which is why we have seen it drop real quickly from the highs.
Currently I am using eTrade Pro, but you can get a similar one from TD Ameritrade (I used to use this account just for the L2). I am using an apple which allows for an actual screen capture (rather than a print screen) so I can take a snapshot of any portion of the screen.
Currently 182k @ .0029 then 795k@ .003 35k @ .0032 and then .007
if anybody can tell me how to post a .png file (in need be a .jpg) I could post the Live L2
So did you email rod and get a response? Did you subscribe to a corporate notification? How did the company know to contact you?
The par value has absolutely nothing to do with the stock price or what Asher is gettting the convertible shares for. The .0001 or par value is pretty much standard language for every stock, to this day I still have no idea what it is used for.
Anyhow, the BOD voted down that financing saying it was not shareholder friendly so it likely involved more shares.
I get that you are being told (by Rod or other) that was their reasoning, but I strongly disagree with that statement. That "shareholder unfriendly agreement" would have resulted in approximately 250million shares outstanding. If memory serves me Harmony would have effectively received 120million shares (they were given class A shares which were worth 3x the value of the current class B (or vice versa). Given that there are 1.5billion approved in which the bulk of them will likely be issued to get funding, I think that the previous agreement was much more "shareholder friendly".
It has been said several times before, This is simply and Ammended 2010 report. There is no new information and the funding that was mentioned in this report was not completed and both parties terminated the agreement late last year. NO funding agreement has been signed at this point in time.
The additional shares at this point in time is simply to satisfy the contractual agreements with Asher. As stated before if they were to convert at this point would convert to approximately 150million shares. The notes require that the company " maintain a reserve of authorized but unissued Class A Common Stock (the “Reserve Shares”) in an amount 5-times the number of shares into which the outstanding debt" or approximately 750million shares, combine this with the 202million outstanding shares is just under 1billion shares required. They also anticipate that the additional shares would be needed for future financing needs. There is no mention of near term financing.
It would appear that there has been some more conversion done (likely by Asher) as there are now 202million outstanding up from 172million as of the latest 10Q
One thing that is interesting to me is the 1million preferred shares that are outstanding. As of the most recent 10Q there were no preferred shares outstanding.
I don't believe that this is the case. The company could issue up to 450million shares, with 250million in Class A shares (these are what we currently own) and 200million in Class B shares. From what I can tell they moved 190million shares of Class B stock to Class A stock which leaves a balance of 10million shares of Class B and 440million Shares of Class A. Again this is simply the way I understand it and certainly could be wrong.
I am not the least bit surprised about this. I mentioned last week that it would be prudent to check the outstanding shares. To recap Asher has $88k in convertible notes (January, May and June Notes-See Page 20 of the 10Q) that can be exchanged for roughly $.001 per share (58% x .0018 = .001) or 88million shares. They have another $25k that will be eligible later this month and $38k eligible sometime in March. If all of these are converted at that .001 value we are looking at 151million additional shares to Asher which would bring the total up to around 340 million.
Now on the bright side we have 190million less class B shares available which after the 3:1 split that they are eligible for would have been the equivalent of 570 million Class A shares (the currently trading class). Feel to correct me if I am misreading this (see 8k from 4-21-11 Item 101 (f) on page 2). I would love to believe that this is to accommodate financing but I suspect it is to satisfy Ashers convertible notes.
Anybody have time to check the outstanding shares? I suspect that we will see Asher converting notes from January,May, and June and raising the outstanding shares all the way up to the By-Law cap of 250 million. There is about $80k in convertible notes to Asher that is eligible to convert at something on the order of $.0012 per share (42% discount to average of the 3 lowest days in the 10 days preceding conversion- assuming .002 share price results in $.00116)
Thanks
To further your point, even if it was a split trade someone was only willing to buy/sell 5,000 shares (or 100 or 1,000 or what ever). If you look today someone SOLD (Bid .0025 ask .0028) 100 shares at $.0025 ie a $.25 trade before commission. So yes GBrown wanted to sell 2 million shares, but at least one person was only willing to buy 5000 shares at $.0018
Stay with me here, but someone trying to pull down the stock may almost be a positive. The person/company pulling down the stock obviously wants to buy (albeit at depressed levels) and feels that the price will increase (again maybe only from those depressed levels). The real big question is whether this is someone trying to accumulate or simply trade the stock. These are just my thoughts for what it is worth.
If you are tired of waiting, I would suggest that you dump your shares. I imagine that there would be plenty of people willing to buy your shares. I am not making excuses, but this is a tough time to secure financing for anything let alone a start up mining operation. I would suggest that you stay out of the penny stocks, especially in the mining sector if you are not patient enough to wait for things to happen as it takes a long time for mining operations to get up and running. A lack of press releases is not that uncommon, press releases cost money and I see no reason to waste a bunch of money on useless uninformative ones.
If you really believe that this is some form of scam you should sell your shares immediately.
I agree that it would have been useful for the press release to list the amount in the tailings pile, however from the MDA of the last 10-Q (Page 36).
"Copper grade ranged from a minimum of 0.16% Cu to a maximum of 0.43% Cu with the average being 0.36% Cu. The report also estimated the tailings to contain approximately 1.2 million tons of material. "
The press release showed up on various financial websites (If memory serves Google Finance was one of them)
I may have missed this in the news release, but the 10-Q notes that there are 1.2million tons of material in the tailings.
Copper grade ranged from a minimum of 0.16% Cu to a maximum of 0.43% Cu with the average being 0.36% Cu. The report also estimated the tailings to contain approximately 1.2 million tons of material.
At an average of .36% this translates into a 8.64 million pounds of copper or roughly $30 million worth of copper. For simplicity assuming a sky high cost of $1.50/lb processing (I suspect that it is much much less than this) this is still nearly $20 million. That is a fairly substantial increase in the resources of the mine. The tailings are much easier to start processing than the mine itself so this would provide some easy cash to get up and running.
Not that it moved the needle much but someone had an order valued at $.94 they sold/bought 200 @ .0047 I am shocked that any brokerage houses would even take this order.
The spread is much bigger if you only consider "real" orders (>$25) you have to go down to .0036 x 55,500 on the low end.
Someone must have put in a big buy (around 1.7 mil) @.0048. L2 shows ask at .0049 x 366,000 next block more than 5,000 doesn't hit until .0148.
Anybody see a news release or anything? Big time buying at close knocking out all the ask prices today. Nearly 2 mil shares bough in last 10 minutes.
I am not sure that they would come out with a new release, and frankly I am surprised that they even came out with this one. To send something out on the newswires like this cost a couple of thousand dollars. The 8-K filings are likely free or certainly at a minimal cost.
The full release of the size of the tailing pile and hopefully the recovery cost will be released in an upcoming 8-K report. The last one took about a week from the date of filing (by Rod) to show up on Edgar (SEC). I wouldn't expect to see any information on this for another week or more (simply personal speculation).
looks like we might have a serious buyer out there right now 105k shares purchased at the asking price in the last 5 minutes or so.
I stand corrected, I thought we had 7 with Stonehouse and Juliand and we lost 2 leaving 5.
Slight correction, they no longer have a 7 member BOD. With the recent resignations they were down to 5 and according to the press release they had no intentions of replacing them.
Did Phantric end up going to the site? He hasn't said much, so I assume that there was nothing new to report at the site (not sure what he was looking for)?