Thursday, September 18, 2014

Taipan's major overhang

Another stock to note is Taipan Resources 19.2 million $0.12 warrant overhang that expires in 5 months.

Expect these warrants to start making their way to the market as they are well into the money.

Best to stand aside and see where the chips fall come March.

300 million PanTerra shares come due September 22nd.

The selling has already started to avalanche into the share price of PanTerra Resources and just like the action of 500 million shares issued at $0.26, the original Private Placement stock comes free trading Monday and will push the share price lower.

The PP selling volume has pushed the price below the $130 million financing level and looks like it is destined to push the price of PanTerra into the high teens prior to the 10:1 consolidation.

Effectively post consolidation, the price will be $0.75/share for 26.7 million shares plus another 3.3 million $1.00 warrants that will be subject to forced conversion.

I think $0.15/$1.50 could be touched as the shares need to be digested but these are just my gut estimates. My bids will be in and around that neighborhood.

Tuesday, September 9, 2014

Dear Vancouver Mining Industry: Please stop sending your dumbass oversexed CEO's to Las Vegas/London/ New York....

Um...... IKN was kind enough to give a heads up to the poor UN workers off for the " I am in a different area code so it is not cheating" story.

This story is not uncommon in the bowels of the mining scene here in Vancouver. CEO and or IR dude off on the dog and pony show only to wake up one longer missing a kidney in a bathtub full of ice, but their Rolex gone, wallet gone, laptop gone, phone gone. You never know what happens at Freedom Fest Las Vegas.... anyway does not matter, what happens in Vegas stays in Vegas.

Ah... rich whitey such an easy target in today's world.

Saturday, August 30, 2014

Teslin proposes to roll back an already rolled back shell

You know the juniors are in desperate times when a new management group comes in and proposes to roll back a Company on a one for four basis that just got rolled (5:1) back in November 2012. The structure of the shell has just 11 million shares currently outstanding.

All matters put forward for shareholder approval at Teslin River Resources Corp.'s annual general meeting held Aug. 29, 2014, were approved, including that:
  • Three new directors were elected, being Neil Currie, Minaz Devji and Jeff Sundar.
  • The directors were authorized to implement a one-for-four consolidation of the company's outstanding common shares.

Now it will have 2,750,000, probably not enough to even meet the qualifications of having 300 shareholders with a minimum 1000 shares each.

My question is are the new guys that incompetent that they can not work with a 11 million shell structure, that they can only work it if it has under 3 million shares?

After perusing the new three directors Linkedin  pages I would assume the bar is set pretty low in order to become a Director of a pubco on the Venture.


Friday, August 22, 2014

PanTerra Rescources, Pre or post consolidation.

I am looking for a new oil and gas play and I have mentioned Tim DeFreitas seems to be adding the right pieces to the puzzle the question is does one buy now or wait for the consolidation?

Although I already have a small position in this deal I am on the side lines until the 10:1 consolidation passes.

The reason being is 500 million shares were issued at $0.26/share which 10:1 will make the issue effectively $2.60/share, since this stock was not put into tight hands expect the shares to break the $0.28/share or $2.80 support and trade down to the issue price with a good chance of going to $2.50/share.

For the time being the $0.28/share support is holding which seems cheap in penny terms, I have the feeling that $2.80/share in dollar terms might be a little rich.

I will have to see where the cookie crumbles on this deal, my gut feeling is this deal could see $2.25 print post consolidation.

Wednesday, August 13, 2014

PanTerra Resources goes for the "Ten Fer"

Just as I predicted back in July that PanTerra would have to go for the "Ten Fer One" option going forward.

I fact these where my words:
 500 million share in top of the 298 million already issued will mean that 798 million will have to be consolidated 10:1 at some point. Going forward to raise any more money with 798 million shares outstanding will be incredibly dilutive.

And here is their words:
PanTerra has mailed the information circular with respect to its annual and special meeting of shareholders scheduled for Sept. 17, 2014. As part of that meeting, shareholders of the company will be asked to approve a special resolution to amend the articles of the company to consolidate the issued and outstanding common shares on the basis of one postconsolidation common share for every 10 preconsolidation common shares. In addition, shareholders of the company will be asked to approve a special resolution to change the name of the company to Ikkuma Resources Corp., or such other name as the board of directors may, in its sole discretion, determine to be appropriate.

There are currently 798,144,522 common shares issued and outstanding. Upon the consolidation becoming effective, it is expected that there will be approximately 79,814,452 postconsolidation common shares in the capital of the company issued and outstanding.

The board of directors of the company has concluded that the consolidation would be in the best interests of the shareholders of the company as it could lead to increased interest by a wider audience of potential investors and could better position the company to obtain financing and pursue acquisition opportunities.

Anyway this is what your chart looks like when 500 million $0.26/shares hits the market.

I picked some up at $0.34/share.

Good Morning Health Lease Properties!

As one of the core holdings in my portfolio that has been cranking out a 7.5% dividend return since I first bought and blogged about it back in 2012,  just got a $14.20 all cash take out offer.

This investment was spurred by the aging boomer population and the growth in the fact tat you got to institutionalize them somewhere where they can trade one- blue pill for two red ones amongst themselves.

Basically I do not have to read any further than these headlines to cha-ching out!

  • HealthLease unitholders to receive CDN$14.20 per unit in cash, representing an aggregate transaction value of approximately CDN$1 billion ( USD$950 million )
  • The purchase price represents a premium of 32% to the 20-day volume weighted average price of CDN$10.79
  • HealthLease's board of trustees unanimously recommends that HealthLease unitholders vote in favour of the transaction 
There are a few surprises left in this world.

Wednesday, July 30, 2014

Frank Callaghan quits!

An interesting little tidbit of news for those who like the colourful world of Venture Exchange mining companies.

Frank Callaghan quits! or maybe is asked to leave, you be the judge.

Barkerville Gold Mines Ltd. (BGM) dropped six cents to 41 cents on 546,000 shares, after Frank Callaghan, the company's president of 23 years, submitted his written resignation. Director Norman Anderson has assumed the roles of interim president and interim chief executive officer for now, while Mr. Callaghan will stay on as a director. He explained that "Barkerville Gold Mines has entered a new phase as a producer, . . . I feel now is the appropriate time to bring in an executive management team that can lead the company through what could be a much larger development." Its development so far has been a handful of gold bars from the QR mine and last week's first 400 ounces of gold from Bonanza Ledge. The company highlighted 14 of Mr. Callaghan's most notable achievements, including how he led the company through a 14-month securities commission review following a June, 2012, resource estimate announcement. (He also led the company to make that resource estimate announcement, which contained 10 million ounces of gold indicated and a potential 90 million inferred, both of which the commission said were misleading and non-compliant.) Interim CEO Anderson made sure to diplomatically thank Mr. Callaghan today for his "many years of selfless hard work and care . . . ." His selfless hard work last year came with a $240,000 salary, plus $1.2-million in fees charged by his private companies for exploration, deferred development, loan interest and administrative expenses. His son Sean also received $68,000 as he learned the business.

Contemporaneously with today's management changes, Mr. Anderson pointed out that Eric Sprott has agreed to a one-month extension on the first of three loan repayments. The payment, valued at 4,200 ounces of gold, is now due Aug. 31. Mr. Sprott has also agreed to extend the deadline of his other loan covenant -- maintaining working capital of at least $1.5-million -- to Aug. 31. This is his second working capital extension; the first was a six-month extension in February. Mr. Callaghan did manage to raise some money since then, $6.8-million in financings, but they have made only a small dent in the company's working capital, which was negative $18-million on Feb. 28, 2014.

As a director, Mr. Callaghan will no longer be entitled to his $240,000 a year in salary, but he might be entitled to a one-time payment of twice that, depending on his definition of voluntary. His employment agreement has a strange stipulation, "if Mr. Callaghan was induced by action of the company to terminate his engagement, on an involuntary basis, then Mr. Callaghan is entitled to payment equal to two years' of his yearly fees." It is unclear if Mr. Callaghan was induced to leave his management responsibilities, but with today's loan extensions it seems likely.
This begs the question where is Frank Jr. (Sean) going to end up?

Friday, July 25, 2014

Panterra Resources free money

So what has Tim DeFreitas of Panterra Resources done for me lately? I picked up a few thousand shares of his deal and he went and issued all the shareholders rights! And then he called them for trading!

I opted to take the cash off the table and pocketed $100.00 after commission. That is better than a poke in the eye with a sharp stick that I got from the junior mining sector.

What's Rick up to these days?

Well, he is chumming around with Frank who has taken some time off from Sarah, telling everyone at the Sprott Natural Resource Symposium about how a dramatic rebound in the juniors is about to occur..

A dramatic rebound has finally occurred in my portfolio after loosing thousands of dollars in juniors last year and sticking all the money into Alberta's Montney and Duvernay oil play where millions of dollars are flowing and making money for everyone except the junior mining players.

As a reminder as to why not to invest in the junior mining scene I still have one of Frank's deals (ROY.H) in an account and it is down a whopping 92% and I have some GMV Minerals that is down a typical 95% for a junior. Both deals got rolled back 10 for 1 killing all chances of seeing any return of the equity. (that is how it is done in the junior mining sector).

Hey Rick that is $13,000 that will never hit the junior mining circuit again, poof! And I am not the only one who lost up to 95% of the value in juniors, there are legions of speculators out there with the same returns, never to step back into the ring.

The real money is flowing into the oil patch just ask Tim DeFreitas who took an $0.08/share shell and raised $130,000,000, yeah that is $130,000,000 million that did not make it into the crappy junior mining scene.

You see the oil patch has a reputation of making money for investors who are more than willing to back new projects, the junior mining scene has squandered the shareholders cash on lifestyle companies, hence why the money will not be flowing back into this scene any time soon.

For the record I will keep the losing position in GMV and Royce as a stark reminder to never invest in the junior mining industry again.