Amarant Mining is supposed to be our MAJOR partner? Not impressed. I see they tried to push some bond sales to raise 500 MSEK, that is about $71 million for those in Rio Linda. They have to pay 8% interest which is quite high in today's environment so they must be quite a risk. Their projected revenues for 2012 are about $37 million so they are a chump change company. Hence the bond offering.
They had an affiliation with Global Gold, a company that has managed to lose $44 million since 1975 so not impressed there either.
In December in 2011 Amarant Mining was involved in a FAILED Joint Venture/Buyout? of AMTO.
In December 2011, pursuant to an agreement that became effective as of November 23,2011, between the Reporting Person; AMTO; persons who were at that time Directors or Officers of AMTO (Phil Cash, Bil Zeleny, Cletius Rogers, and Gary Mason);Conventus Ltd.; Amarant Mining Ltd.; XS Platinum Ltd.; XS Platinum, Inc.; Gold Crown, LLC; Johan Ulander; and certain others, the Reporting Person transferred to AMTO all the shares of Common Stock that were owned by the Reporting Person in consideration of, among other things, the receipt by the Reporting Person of shares of common stock in a new entity to be formed by Conventus, Amarant and Mr. Ulander and which, upon its organization and a merger to be effected thereafter, would own controlling interest in the XS Platinum entities, Gold Crown and certain related companies. To the best of the Reporting Person’s knowledge, the new entity would not own any shares of Common Stock of AMTO. The agreement also provided for the payment to the Reporting Person of certain amounts under certain conditions, including the timely conclusion of certain steps and actions that were to be undertaken and concluded by Conventus, Amarant and Mr. Ulander on a timely basis. Those steps and actions have, in the opinion of the Reporting Person, not been taken or concluded timely, and the Reporting Person has so informed Conventus, Amarant and Mr. Ulander thereof in writing. In the same transaction, all the litigation brought by and against the Reporting Person and AMTO and its Directors and Officers was terminated and mutual general releases were exchanged between and among several parties to those legal actions. As a result of such transaction, the Reporting Person has no ownership or other interest in AMTO, directly or, to the best of the Reporting Person’s knowledge, indirectly.
Now let's examine the deal revisions:
See Amarant doesn't have $180 million. So, get this, they are going to form a brand new stock corporation and give $54 million of possibly worthless paper shares of the company to Medinah as security for the $180 million. HAHA
They promise to pay Medinah $18 million per year, that would take 10 years for the whole $180 million. That's a long wait. Medinah get's only 7.5% smelter royalty until then. Minus expenses and then half of anything that might be leftover for Medinah USA. I'm still flacid.
Now Medinah can sell 10% of the securitized $54 million in new company stock, back to Aramant's associates, whatever the heck that means and walk away with $5.4 million. No where does that say it will go to Medinah USA. It could go in JJ's back pocket. Well he certainly jumped on that option pronto. I guess if he feels there is something on LDM he could use that money to explore.
Now that 15% free carried interest is gone because you have to reimburse expenses now so you are getting only half of 7.5% or maybe less. Remember I told you they would work the deal to cut out Medinah stockholders.
If this mountain had billions of gold I would think JJ and company could get a MUCH better deal than this. The fact that this is all we get says NO BIG WHOOP. And that is why the ASSAY results were done as a range and not an average and why EMEMA is not paying for processing. Less than 5/grams/ton average.
Remember gold is near $1,600/oz and it is hard to find in democratic, anti-tree hugger type environments like Chile. Good miners are DESPARATE for a good source to mine.
Amarant could also do like what they did with AMTO and never fund the deal.
THERE IS NO MONEY TRANSFERRED SO FAR.
Dentists know gold fillings so maybe the good doc has come through, the question is for 15 years partners have walked away. WHY?
I say a jump in price, maybe 15 to 25 cents and then settle back down to around a dime waiting, waiting and more waiting. Medinah needs to break one billion dollars in NAV before we can go much higher long term than a dime.
AI
