Welcome To The Inspiration Mining HUB On AGORACOM
The company is exploring for nickel deposits on its Langmuir property near Timmins, Ontario; for nickel-gold-copper on its Cleaver and Douglas properties; and for molybdenum and rare earth elements at recently acquired Desrosiers property.
Message: Land acquisitions with shares..a question for the smarter posters?
I watch the trading pretty close as you all know (roll your eyes) and I wonder who sells us down all the time. Often it is CIBC, and at times can be Anonymous, when a trader wants to use the cloaking device.
Anyway, when a company uses shares and cash to make acquisitions and or pay for services, there is always the possibility that we will have to face that selling pressure one day when the party at the other end needs to buy groceries etc. or simply get that agreed upon cash value
So looking at the Desrosiers move, can anyone tell me what the details may be on the 5 million shares that were provided in this deal?
IE: were they restricted or free trading? If they were valued at $2,750,000 for 5 million shares then we are looking at a .55 cent value. ( Priced near market at that time)So these shares are barely in the money now and have only been essentially since the run to .96 June 12 2009. See the 1 year graph below for when the shares were in the money.
The deal was done back on Nov 25, 2008. Is there a chance these guys have been unloading to capture the best part of that 2,750,000 dollars in shares they were given? We would have to know if they were free trading or restricted for one thing.
I am all for conserving company cash, but here we are at 60-65 cents and have hovered at the magic .50-.60 cent groove for about the same time as these guys getting 5 million shares. All in light of an upticking market and Nickel doubling in price. Ultimately, if they have not already, when will those 5 million shares bite us poor saps. What gives??
BUSINESS ACQUISITION On November 25, 2008, the Company completed the acquisition of 100% of the issued and outstanding shares (the “Shares”) of 1691063 Ontario Ltd. ("1691063"), a privately held company, as well as debt due and owing by 1691063 in the amount of $150,000. As consideration for the Shares, the Company paid $250,000 cash and issued 5,000,000 common shares (valued at $2,750,000) to the former shareholders of 1691063. The Company also paid legal fees of $7,500 in connection with the acquisition. 1691063 is the owner of the Desrosiers Property which consists of six claim units located in Desrosiers Township, Ontario. Details of the acquisition are as follows: Purchase price Cash paid $ 250,000 Common share issued 2,750,000 Transaction costs 7,500 $ 3,007,500
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