Azucar Minerals Ltd (AXDDF)

[GreenBackClub]

Strong cash position for exploration spin-off

Almadex Minerals Ltd. (AMZ:TSX.V, 1.55) is raising C$5.6 million in a private placement, prior to the split of the company into the large El Cobre copper-gold project (in which company Australia major Newcrest will hold nearly 20%), and an exploration spin-off. The funds from the new equity raise will go into the spin-off, which (to confuse matters) will probably retain the name Almadex. This spin-off will be well financed. In a revision of earlier estimates, it will hold approximately $7.6 million in cash ($1 million existing cash, plus $1 million reimbursement for Newcrest-related expenses plus $5.6 million from the private placement). It will also hold 1,600 ounces of gold bullion (a little over $2 million) plus 4 million shares in the El Cobre company, along with a small portfolio of other, smaller companies. Almadex is a buy on weakness.