recently reported in fill results
up 25% today
sold half of my shares into this price run, and will look to buy back in at .20 -.21. The volume over the last week has been much higher than normal. Something is brewing.
I wouldn't consider this to be "insignificant" insider buying!! Large enough purchases to make this appear to be some insider confidence.
Nice rally on the shares, too.
TORONTO, ONTARIO--(Marketwire - Nov. 3, 2011) - Pinetree Capital Ltd. (TSX:PNP), announces that through a series of transactions ending on November 2, 2011, it acquired ownership of 2,750,000 common shares ("Common Shares") of Cream Minerals Ltd. ("Cream Minerals") through the facilities of the TSX Venture Exchange, representing approximately 1.8% of the total issued and outstanding common shares of Cream Minerals as of November 2, 2011. As a result of this transaction, Pinetree held, as at November 2, 2011, an aggregate of 23,250,000 common shares of Cream Minerals, including the Common Shares, and rights to acquire an additional 5,000,000 common shares of Cream Minerals upon exercise of certain convertible securities (the "Convertible Securities"). In the event that the Convertible Securities are fully exercised, the holdings of Pinetree represents a total of 28,250,000 common shares of Cream Minerals, or approximately 18.0% of all issued and outstanding common shares as at November 2, 2011, calculated on a partially diluted basis assuming the exercise of the Convertible Securities only.
This transaction was made for investment purposes and Pinetree could increase or decrease its investment in Cream Minerals depending on market conditions or any other relevant factor.
Cream has a shareholder rights plan (SRP) that allows current shareholders to double down at a 50% discount to market price if any single entity acquires more than 20% of the float. This put Pinetree on the doorstep. I'm scrambling to get my broker account changed from cash account to a margin account in case the SRP terms get triggered.
"Effective as of May 24, 2011, rights (the "Rights") will be issued and attached to all of the Company's outstanding common shares. A separate rights certificate will not be issued until such time as the Rights become exercisable (which is referred to as the "separation time"). The Rights will become exercisable only if a person, together with its affiliates, associates and joint actors, acquires or announces its intention to acquire beneficial ownership of the Company's common shares which when aggregated with its current holdings total 20% or more of the outstanding common shares of the Company (determined in the manner set out in the Rights Plan). The Rights will permit the holder to purchase common shares of the Company at a 50% discount to their market price (as defined in the Rights Plan Agreement)."
Sorry you sold. Might not see 0.20 again. If we do, hats off to you.
A run like that with massive volume under it means it's time to strap in, not sell out.
I am still struggling to understand the purpose of this "Shareholder's right" program. A lot of investors may be like you will get the extra shares on margin and sell them back for a profit. If this is the case, the stock price will be under huge pressure once this program is triggered. And those who do not purchase the extra shares will actually suffer through loss in share price.
I don't see how the company benefit from it to establish the program in the first place.
Will people sell the stock before the program is triggered? Or I am missing the concept completely?
Thanks in advance!
The SRP is like a poison pill. It is used as an obstacle to make it unattractive (for the reasons you point out) for someone to quietly buy up a controlling position in the company. If an unwanted suitor loads up on common stock, existing shareholders buying at a discount will suppress the share price (putting the acquirer's shares underwater) and also dilute the acquirer's position by 50% making it harder for them to gain a controlling interest in the voting shares.
The only way an existing shareholder can hope to benefit is by exercising their option to buy at a 50% discount. The positive of this type of plan is that it prevents someone from gaining control of the company without the board's (and shareholders') approval, or without having to pay a premium. It also gives mgt breathing room and time to execute their development plan without having to be constantly looking over their shoulder to see who's trying to steal the assets on the cheap before they're fully proven, developed and valued at their full potential.
FWIW, Pinetree must know about the SRP. I don't think they will cross the 20% threshold, but I want to be ready if the SRP kicks in, as I have no dry powder otherwise.
That makes a lot of sense!
Preliminary metallurgical test-work from Nuevo Milenio looks very compelling. Results from a
combination of flotation with one cleaning circuit followed by cyanidation of the flotation
tailings produced Au & Ag recoveries of 94% and 90% respectively.
Undervalued Mexican Silver
Based on the following comp table it is clear that silver explorers are averaging approximately
$1.35/oz in the ground with an average grade of 171g/t Ag. Based on these metrics Cream offers
investors significant upside based on its average grade of 250g/t Ag and in-situ valuation of
.70 per Ag oz. With plenty of exploration upside and a new resource estimate on its way we
expect Cream to trade between
.50 and $1.00 per share. Thanks to Benh @ Stockhouse for this
In addition the current estimate is based on low recoveries of core and the company expects it is likely the estimate
represents the low end of the range of actual grade.
The Nuevo Milenio resource was calculated using metal prices of US$10.28/oz Ag and US$816.09/oz Au to determine the
cut-off grade of 131 g/t Ag as shown in Figure 1. Using US$20/oz Ag and US$922/oz Au lowers the cut-off grade to 70 g/t
Ag from 131 g/t. The result is a resource that jumps to a 71 million ounce equivalent (and wider mining widths).
Strong Shareholder Base
Major shareholders, including Sprott Asset Management (16.1%), Pinetree Capital (13.5%) and insiders (13.5%), increase our confidence the project will be developed. We expect that the company’s sole focus will be on Nuevo Milenio, a focus we believe did not exist before but demanded by the major holders, and the reason we expect Nuevo Milenio will be advanced rapidly.
Also from Benh@stockhouse
Not overjoyed with how the infill holes were reported but that could be blowback from the very recent CBJ gold stupidity. In any event Cream is now streaming live and appears to picking up some support.
I'm pregnant with expectation for good things from Cream Minerals
Here's another decent interview with Michael O'Connor:
I'm not sure what to make (if anything) of the interviewer hinting at future production...
Does anyone know if the rumors about Sprott and Pinetree exercising their $.24 warrants is true? It'd be nice if Cream was fully funded for 2012 on those warrants.....
More good news today.
Ellis Martin does an interview with Michael O'Connor: