RE: Copper rising at 2.37 dollars and9 Nov 2016 03:28
Posted by Eric66 20/0816:-
Aussie Investor
As a result of putting my email up on LSE I have been contacted by a shareholder based in Austraila. He claims to be close to the board and is able to get some of these cryptic RNS's clarified. What do make of this he is saying we all have missed a crucial point
IThere is one very important thing that I noticed in the recent 4/8 announcement: ( that does not seem to be properly understood or appreciated by shareholders or the market )
“A condition of the Agreement is that the Company will use its best endeavours to distribute at least 90% of its holding in Hampton Mining (the wholly owned subsidiary holding its interest in the Los Calatos Project) to its shareholders within six months of completion. The Company will in due course be calling a meeting of its shareholders to seek approval for the return of capital to effect the in specie distribution of its holding in Hampton Mining.”
If this occurs as stated it will involve an offer for return of capital ( payment to shareholders from Metminco ) for an assumed value of the remaining portion of LCH. I assume and have had indication that this would be based on the valuations already used to value CD capital input for their percentage ownership etc. ( USD$45M for 70% and therefore 30%=USD$19.285M), maybe even higher to entice shareholders to participate given that the transaction and funding is underway and also depending on how many parties are bidding for this equity slice. The timing of this may be as early as this calendar year. I believe that announcement of this provision alone will propel the share price beyond the price offer. It will allow existing shareholders to take a choice to be compensated to exit their ownership of LCM via MNC, possibly allow LCM to become a private/unlisted entity, and then shareholders in MNC would have remaining value in Columbian project after having been compensated for selling share in LCM.
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