So it appears EMR has offloaded the southern cross prospects that Bullzeye had.
Tthe EMR announcement is rather light on details, no indication as to why the decision was made, and nothing that informs how much a position they are taking in GHML.
The announcement from Golden Horse minerals is a bit more revealing.
GHML cap is around $12M CAD. The AUD>CAD exchange rate is close enough that you can roughly equate 1:1. So its pretty much a tiddler. Around 46M shares on the CAD listing.
The GHML announcement states that EMR will have 41% interest in GHML, but this does not include any shares issued to other shareholders as part of the ASX listing. 50% of the loan is to fund the process of getting listed on ASX, and the loan is expected to be repaid in full from money received as a result of the listing.
So it looks like they are going to issue a shedload more shares as part of the Oz listing. $2M to repay the loan is approx 8M shares. They'll likely use the opportunity to raise capital from drilling etc.
So possibily 90-100M shares in issuance in GHML after the ASX listing, with EMR holding around 30% of the company after the dust settles. Existing GHML shareholders seeing approx 50% dilution.
Both companies hope it'll all be done by mid Nov.
EMR Price at posting:
$3.76 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)