RE: Shareholder Value23 Dec 2016 12:13
As I understand it:
Scenario 1
Los Calatos Holding Ltd (LCH) lists as a company in its own right, I am guessing on the Canadian exchange. Hampton mining would get shares in the company as a proportion of its ownership (current 49% but could reduce to 30%, I am guessing their plan is to exercise their right post feasibility/further drilling) Hampton would then distribute to us as shareholders of metminco, pro-rata our holding, 90% of the shares it gets in LCH. We would then be separate shareholders of LCH as well as Metminco.
Scenario 2
CD capital, as the majority shareholder (51% already, could be 70% on further execution) agree (again likely post feasibility/further drilling) to sell LCH to a big mining producer e.g. BHB, RIO ect. and receive a cash settlement. That cash settlement is paid to Hampton (being either 49%, 35% or 30%) as proceeds. Hampton would then distribute 90% of that cash to us as shareholders (likely by special dividend,) pro rata our metminco shares. In their last Q&A they give an indication starting value of that settlement being $290m. So if CD fully exercise that would mean 30% to us being circa $87m. 90% of that is $78m. Very crudely, prior to consolidation that is $0.017 a share ($78m/4,513m shares) so circa 1.4p a shares. And you still keep your Metminco shares. - Also imagine if they do intersect a further vein on drilling, the resource and sale value would increase even more.
I really think 2017 is going to be a much better year for us here, we have Mira drilling to look forward to also.
All IMHO, DYOR, GLA& Merry Christmas
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