LMEFF/LME.V Report & Update – Potential Buyout & 800-1,400% Return via /r/wallstreetbets #stocks #wallstreetbets #investing


LMEFF/LME.V Report & Update – Potential Buyout & 800-1,400% Return

This is an update and has some additional information and resources that were not included in this earlier post about Laurion Mineral Exploration (LMEFF/LME.V). It is a promising and stable company with tremendous upside and may soon be acquired.

Company Overview

Laurion Mineral Exploration is a junior brownstone polymetallic drilling company focusing on mining resources (gold, silver, zinc, copper) with its Ishokday project.

They were founded in 1945. Their CEO, Cynthia Le Sueur-Aquin has led the company since 2003.

They are debt free, fund drilling programs through private investments, and have enough cash to sustain operations until January 2024. Their goal is a full-cash buyout which may be announced on August 19th.

Additionally, 81% of shareholders are considered “friends and family insiders”. The share price was $0.11 (USD) in July 2020, $0.50 in July 2021, and $0.81 in July 2022.

Company Success

Since 2019, LMEFF/LME.V's Ishkoday project reached production and drilling targets. See slide 8 of this presentation.

Of page 7 of their latest financial report, which was released on May 26th, it states that they have the capital to continue operations for the foreseeable future.

The stock spiked from $0.16 to $0.50 when they announced a 10,000m diamond drilling program. Then, it spiked from $0.54 to $0.76 when they started their diamond drilling program.

Moreover, their goal is to accumulate 10 million gold equivalent ounces (GEO's). An NI43-101 has not been filed, however, because they’re expanding their mineralized area (the McLeod Zone), it appears that they've met or exceeded their 10 million GEO target.

Heading towards Buyout

They scheduled an Annual General Meeting (AGM) on September 28th. Also, their “record date” is on August 19th; this is the latest that investors can purchase stock to be considered for potential dividends or buyout distributions.

In 2019, 2020, and 2021, their AGM took place in late June and early July.

In March 2020, their CEO stated that LMEFF/LME.V is 3-5 years away from a buyout.

On June 24th, the CEO exercised options for 1,530,000 shares, with most of them expiring at the end of 2022, 2023, and 2024. She's never sold shares of LMEFF/LME.V and remains the primary shareholder.

In 2021, Canada imposed new corporate stock taxation laws, creating a $200,000 tax rate exemption of the difference between the exercise and fair market price upon the option being exercised. By exercising her options now rather than post buyout, the CEO will only pay capital gains tax (which is lower than personal income tax) on the profits generated from the buyout.

Hypothesis – They reached their 10 million GEO target earlier than anticipated and are ready to be bought out, their CEO sold long term options to reduce taxation, and the AGM is later than usual because they’ve negotiated buyout conditions. A buyout will be announced shortly after the “record date” on August 19th.

Buyout Price Projection

On July 11, 2022 Great Bear Resources was acquired by Kinross Gold for $200/oz. Most of their mineralization was at depths greater than 1800m, making it difficult to access.

LMEFF/LME.V has at least 10 million Gold Equivalent Ounces (GEO’s) at a 685m depth, which is easier to access and more valuable.

Conservative estimate: Their requirement for an all-cash deal or a market downturn could lead to a similar price per ounce (PPO) as Great Bear Resources.

With 10 million Gold Equivalent Ounces (GEO’s), they'd receive a $2 billion cash offer. And with about 250 million owned shares, the buyout price would be $8.00/share.

Optimistic estimate: If they receive $300/oz for 12-15 million GEO's, they’d receive a buyout price of $10.00-14.00/share

Conclusion

LMEFF/LME.V has stable leadership, finances, a track record of success, and value as the stock increased by 2.33% over the last 6 months. This makes it a secure short-term hold.

Additionally, their CEO announced an all cash buyout as a long term goal, is selling shares despite the company potentially reaching their 10 million GEO goal, and is hosting an AGM later than usual with a shareholder vote. This indicates that a buyout could be happening soon. If it happens, shareholders may receive an 800-1400% return.

Finally, during their AGM, they’ll announce their drilling programs’ results, including that of the diamond drilling program, which was the catalyst for their 727% growth over the last 15 months.

How to Buy

Shares must be purchased before the August 19th "record date" to be considered for potential dividends or buyout distributions.

There are 2 dates that this stock should be held until: September 7th and October 1st.

On September 7th, they’ll release the itinerary for the AGM, which will be held on the 28th. This will verify if a buyout will happen, unless a press release was released sooner.

On October 1st, they will have released their drilling programs’ results and it will have impacted the share price.

Note: This is not financial advice. Please do your own research and invest accordingly.

Submitted August 02, 2022 at 07:03PM by BakeDue7944
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