Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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BCN Chatter:
For avoidance of doubt, Mr Lenigas did NOT comment for BCN but for REM-KDNC yesterday from what I read on Twitter.
If people did NOT want the T/o, this could have happened:
1] Per Nick Mather, he does NOT want any JV and he has stated why. Lithium Americas*s Nevada lithium project is NO 2 and that is NOT under JV with Gan. Lithium Americas has a big mkt cap with 2 projects, only 1 JV*ed in Argentine. So, this is WIDELY KNOWN from these 2 examples etc.
2] Many stocks are traded - example KAZ wherein the directors bought the co given the low share price. In academic theory, this is also known given that where a share price is low, it is taken over or there is a management buy-in. Biz 101.
3] BCN*s top people are NOT founders of the co as akin to Nick Mather who founded the co. They have a different outlook in that they want to keep their co. Employees may NOT have that same objective which one sees in so many examples.
4] Before the t/o, the % was already 29% of ownership and NO ONE said anything but instead there was such praise etc. One has shareholders rights and that is via voting etc.
5] Everything was O.K and the strongest nay nay did not object at any point.
6] Now, people talk of £1 t/o from REM plc. Who knows what would have happened if Mr Lenigas took over BCN at £1. From what I could gather , he may have sold the whole co but that would be at a later point closer to production. Mr Lenigas may have been able to have raised the capex. One cant tell as that is now history.
Suffice to say, the t/o is of interest to REM holders in that now there is a M & A benchmark as I posted which is positive from certain angles.
Takeovers are happening in the lithium space and even in property this morning. T/O happen at a time when prices are attractive to buyers, again biz 101.
That*s is reality on the ground and if one does not want a co taken over, then the following must be considered and stronger hands to hold shares etc.
Historical and only for disussion.
Fri, 7 May 2021.
====GANFENG POSSIBLE TAKEOVER FOR BACANORA TODAY====
Hand has been shown today re: above. No point in keeping it under the bush anymore.
Ganfeng is buying 70% of BCN*s SONORA LITHIUM LTD [SLL] or rather more accurately 35% given they already have 50% of BCN.
In terms of licences, no co wants a minority holder like REM MEXICO LTD @ 30% holder of SLL via REM MEXICO LTD.
Example? The Cascabel licence -the main 85% holder wants to buy out the 15% holder to make it easier. This is something well known. Makes life easier as decisons can be made without reference to the minority holder/S if any?
So, interesting as to what happens next?
The prize is Sonora, Ranked No 1.
Thur, 6 May 2021
Yup, from my last post from Proactive Investors UK today, it is S O N O R A that Ganfeng is interested in [see the Proactive article].
Per D. Lenigas*s tweet from years ago which I posted on this forum recently, he said its 100 BILLION BUCKS.
£221 m / 100b= 0.221%
10% of 100b= $10b
1% of 100b=$1b
1/2% of 100b= $500m.
For illustration only.
DAVID LENIGAS
He was supposed to have put across the idea of REM plc [then, historical now] of 5p for REM.
At 2.25p [high], REM had a mkt cap of £95m.
So, at 5p= £211m [illustration as implied].
===
BACANORA has offered 67.5p = Implied £223million.
Current 57p=£190m MKT CAP.
My comment:
It is interesting that 70% for Sonora +100% BCN comes to £225m.
Ganfeng will still NOT OWN 30% OF SONORA LITHIUM LTD [REM per on the original agreement] but only 70% if they take over Bacanora Lithium 100%.
Thur, 6 May 2021
For discussion only of the historical.
PROACTIVE INVESTORS article just out:
"Independent directors at Bacanora said the offer is attractive and that they would expect to recommend it once it becomes a formal proposal, something that requires approval from the Chinese authorities."
"Ganfeng already has a 29% stake in Bacanora AND ALSO A 50% STAKE IN S O N O R A , the
junior miners LITHIUM DEPOSIT IN MEXICO."
https://twitter.com/proactive_UK/status/1390295296639442946 Thur, 6 May 2021 [21 mins]
Anyone notice the difference in the BCN RNS from the past re: rejection of REM plc offer of £1 for BCN vs BCN RNS of today, 6 May 2021 about a "Possible offer for BCN?."
BCN did NOT state as they did for REM plc that they rejected the offer or some such like phrase as I recall [long time ago]?
So, what is the BCN take on the offer?
Notice it is a "Scheme of arrangement", 50% premium and the dates 6 June 2021 and 31.12.21?
For discussion only.
DAVID LENIGAS, FORMER CHAIRMAN OF REM PLC [NOW KDNC]:
In reply to a Question: " Just Bacanora share as I read it.
GANFENG WILL PROBABLY WANT TO EVENTUALLY OWN THE WHOLE OF THE SONORA LITHIUM DEPOSIT - So I will be watching Cadence Minerals with more interest."
@1:12pm, Thur, 6 May 2021
https://twitter.com/DavidLenigas/status/1390278226400980992
--
Comment:
D.Lenigas has a commercial outlook hence his answer.
Thur, 6 May 2021
Re: My last post below:
---------PREVIOUS THESIS ON SONORA LITHIUM LTD [SLL]------
BCN 70% KDNC 30%
Post Ganfeng 50% share of BCN: SLL 35% BCN, GANFENG 35% & REM-KDNC 30%
Illustrating 30% by REM plc [original name on agreement] means that REM is a big player in SLL.
Hence, if Ganfeng takes 100% of BCN = 70% GANFENG vs 30% REM plc [now KDNC]
One to wait and see what is going to happen next?
News, Thur 6 May 2021
---------WHAT HAPPENS NOW TO KDNC PLC??----------------
Stage 1 production is 80% on Ventana only.
20%?-Balance?
----SONORA LITHIUM LTD [SLL]:
-Originally: 70% BCN vs 30% KDNC [REM plc]
After 28.8% Genfeng stake in BCN = 50% of BCN, SLL NOW:
GANFENG 35%, BCN 35% & KDNC 30%.
------GANFENG OFFER NOW FOR 100% OF BCN @67.5p, Thur 6 May 2021----
Next piece of interesting development?
-----
Comment:
As I said on this forum, it is SONORA LITHIUM, NO 1 RANKED that is of great interest naturally.
News, Thur, 6 May 2021
DAVID LENIGAS, FORMER CHAIRMAN OF REM PLC:
"Amazing for Cadence Minerals. Bacanora being potential cash bid by Ganfeng at 67.5p a share. I started this whole venture at SONORA. So chuffed, Cadence owns about 30% of about 70% of the MASSIVE SONORA lithium project. Now 800lb gorilla partner."
16 mins ago, Thur, 6 May 2021
https://twitter.com/DavidLenigas/status/1390271878701749760
P.S.
Yes, there was a tell-tale. Ganfeng is about to take a 29% approx stake in BCN.
I have to re-check the exact amount later.
Just as REM took at 20% stake [direct] in BCN on the Canadian exchange and per DL, our Founder of REM plc then [historic], he said over in Canada the T/O rules are different in that it only needs 20% to make an offer.
Thur, 6 May 2021 @12:55 noon
News just out that Ganfeng is offering a possible 67.5p in cash for Bacanora Lithium plc.
LoL - Bacanora Lithium = SONORA LITHIUM, MEXICO
HL is showing 55p/57p advertised price +25% , MKT CAP £201.8MILLION.
REM offered BCN years ago £1 for their co/
Interesting.
Thur, 6 May 2021.
DYOR
Not surprised as it makes corporate sense given Sonora is No 1 ranked as discussed and what I was interested in posting on this forum and on REM.