ALS.TO - Altius Minerals

[ItsAValueTrap]

The securities were acquired on March 31, 2015, through a private sale with 226 at a price of $0.49 per share in connection with a corporate reorganization of 226.

 

Read more at http://www.stockhouse.com/news/press-releases/2015/04/01/altius-investments-limited-acquires-stake-in-kobex-capital-corp#6O5sFcPAXU6klbjQ.99

 

Seems like a slightly low price for Kobex.  Good deal for Altius.  Perhaps there are tax considerations for Eeden, as he may have a tax loss on the position.  Because Altius is paying Eeden to manage assets, perhaps Eeden (or his protege) will get a quid pro quo in the future.

 

One thing Altius can do is to use its balance sheet to buy up lots and lots of Kobex.  Then it can use its control to liquidate the company and return everything to shareholders.  This would be kind of a no-no because the employment management agency for the Kobex board of directors would end... Venture stocks usually have interlocking boards that works out very profitable for the insiders (who get paid a lot).  That could hurt Altius' ability to do deals with juniors on the prospect exploration side.  Or Altius could merge with Kobex and pay the insiders off- I think that would make more sense and would close faster.  If Altius pays stock for Kobex, then maybe it could get away with using overpriced stock to pick up a pile of cash.  Who knows if Kobex shareholders would go for that.  Before all of that happens, Altius will likely buy lots and lots of Kobex first.

 

Ultimately, a good deal for Altius.

 

so now Altius has ownership in two investment vehicles managed my PVE...

Kobex is managed by Van Eeden's protege.

 

*This is a lot of speculation on my part.

[hohi]

Cranberry probably sees huge opportunity in the sector and instead of ALS giving even more Cash to Cranberry directly, they own a position in Kobex and Evrim directly and give PVE the ability to deploy some more cash (in ALS' name) in the near future. In the big picture it is probably a no-event, but who knows - if PVE gets lucky he might hit a home-run on one of the juniors Cranberry invested in.

I have looked at Kobex for a few month now, but figured I can invest my own money for a lot less G&A ;). Still a cheap company though. And I like PVE.

[nostradamus]

Hohi, regarding kobex, you can invest your own money with a lot less G&A. But one dollar of your own money invested gets you a one dollar investment. Whereas a one dollar investment in kobex gets you something like a 1.3 dollar investment in their portfolio, given the current discount to book. Plus the investments will be based on the inside views and connections of someone like pve.

[TwoCitiesCapital]

Hohi, regarding kobex, you can invest your own money with a lot less G&A. But one dollar of your own money invested gets you a one dollar investment. Whereas a one dollar investment in kobex gets you something like a 1.3 dollar investment in their portfolio, given the current discount to book. Plus the investments will be based on the inside views and connections of someone like pve.

 

+1

 

Though it's more like 1.5x investments per $1 invested. ($34M CAD in investments/equity divided by $22M CAD market cap)

 

Would be nice to see Altius take this out as Glenn pointed out. Just running quick figures - it'd only cost Altius some $16-17M USD at these prices and exchange rates and they'd receive 27M USD in exchange. They could even pay a hefty premium and make a winner out of this. How likely is it to do this though. I don't generally see companies taking advantage of these types of opportunities - also, the $10M max gain would still only be representative of about a 3% gain to the co (based on it's current market cap in USD). It seems an acquisition would be quite a lot of headache to achieve a max gain of 3% for the company but maybe it's worth it if they see immediate opportunities to reinvest that extra $10M into.

 

 

 

 

[hohi]

Hohi, regarding kobex, you can invest your own money with a lot less G&A. But one dollar of your own money invested gets you a one dollar investment. Whereas a one dollar investment in kobex gets you something like a 1.3 dollar investment in their portfolio, given the current discount to book. Plus the investments will be based on the inside views and connections of someone like pve.

 

Well of course you have your point there, but after factoring in the huge spread and the relative illiquidity I personally invest my spare cash in some other companies (that are also selling very cheaply and might even sell for less than cash). I already own a lot of Altius and through them Kobex.

 

I am not saying Kobex is a bad investment. To the contrary. I like it a lot, but I like other things a lot more ;).

[Liberty]

For what it's worth:

 

http://bloom.bg/1IwBHS9

[investor-man]

For what it's worth:

 

http://bloom.bg/1IwBHS9

 

Am I the only one looking at India and thinking if a commodities boom is going to come, it's coming from there, not China

[TwoCitiesCapital]

For what it's worth:

 

http://bloom.bg/1IwBHS9

 

Am I the only one looking at India and thinking if a commodities boom is going to come, it's coming from there, not China

 

I've been thinking about that too. I don't expect China to sink into a blackhole, but there was over-investment and it will take a decade or so to overcome the effects of it. India on the other hand has more people and more developing to do and they just put pro-business government in place. I'm not banking on the supercycle in commodities to continue, but I think we'll be seeing India play a bigger role in the future. Between China & India, they have 1/3 or of the global population and both are hungry for development.

[bizaro86]

Cranberry probably sees huge opportunity in the sector and instead of ALS giving even more Cash to Cranberry directly, they own a position in Kobex and Evrim directly and give PVE the ability to deploy some more cash (in ALS' name) in the near future.

 

I hope this wasn't the reason. Cranberry is easily my least favourite part of ALS. Owning royalties, and prospect generation for royalties are both great businesses on average. Investing in someone else's junior is a terrible business on average. I hope ALS decides to keep our capital in the business with the wind at its back.

[TwoCitiesCapital]

http://www.reveloresources.com/content/398/RVLNRApril%20212015Final.pdf

 

Revelo Resources Corp. (“Revelo” – TSX-V: RVL) is pleased to announce that it has

agreed on the principal terms and conditions with Altius Minerals Corporation’s (“Altius” – TSX:ALS) 49% owned

Chilean subsidiary BLC SpA (“BLC”), upon which Revelo will purchase from BLC four properties (the “Properties”)

totalling more than 56,000 Ha in Northern Chile (the “Acquisition”).

 

As part of the Acquisition Revelo will:

1. Issue 2,659,574 common shares of Revelo (the “Acquisition Shares”) at a price of C$0.094 per share;

 

2. Issue BLC 500,000 common shares (the “Feasibility Shares” and, together with the Acquisition Shares,

the “Revelo Shares”) on completion of the first feasibility study on any one of the Properties (in respect

of all of the Properties, no matter how many feasibility studies may be completed); and

 

3. Grant BLC a royalty of 2% of net smelter returns from commercial production of precious metals and 1%

of net smelter returns from commercial production of base metals from each of the Properties (the

“Royalties”). Revelo will have the right to purchase one-half of the Royalties in respect of each of the

Properties for C$5 million, which right will be exercisable for a period of five years following the

commencement of commercial production of mineral products from each of the Properties.

A Letter of Intent has been signed between the two companies detailing the terms and conditions of the

Acquisition.

 

The companies will strive to arrive at a definitive agreement no later than May 25, 2015.

The closing of the Acquisition is subject to: (i) delivery by BLC of all of the information regarding the Properties;

(ii) the results of due diligence of the Properties being satisfactory to Revelo; (iii) receipt of the approval of the

Acquisition by the board of directors of Revelo; (iv) receipt of acceptance by the TSX Venture Exchange (the

“Exchange”) of the Acquisition and the Placement, including the listing of the Revelo Shares on the Exchange; (v)

completion of the Placement; and (vi) no material adverse changes will have occurred in the Properties.

[naboo]

http://www.reveloresources.com/content/398/RVLNRApril%20212015Final.pdf

 

Revelo Resources Corp. (“Revelo” – TSX-V: RVL) is pleased to announce that it has

agreed on the principal terms and conditions with Altius Minerals Corporation’s (“Altius” – TSX:ALS) 49% owned

Chilean subsidiary BLC SpA (“BLC”), upon which Revelo will purchase from BLC four properties (the “Properties”)

totalling more than 56,000 Ha in Northern Chile (the “Acquisition”).

 

As part of the Acquisition Revelo will:

1. Issue 2,659,574 common shares of Revelo (the “Acquisition Shares”) at a price of C$0.094 per share;

 

2. Issue BLC 500,000 common shares (the “Feasibility Shares” and, together with the Acquisition Shares,

the “Revelo Shares”) on completion of the first feasibility study on any one of the Properties (in respect

of all of the Properties, no matter how many feasibility studies may be completed); and

 

3. Grant BLC a royalty of 2% of net smelter returns from commercial production of precious metals and 1%

of net smelter returns from commercial production of base metals from each of the Properties (the

“Royalties”). Revelo will have the right to purchase one-half of the Royalties in respect of each of the

Properties for C$5 million, which right will be exercisable for a period of five years following the

commencement of commercial production of mineral products from each of the Properties.

A Letter of Intent has been signed between the two companies detailing the terms and conditions of the

Acquisition.

 

The companies will strive to arrive at a definitive agreement no later than May 25, 2015.

The closing of the Acquisition is subject to: (i) delivery by BLC of all of the information regarding the Properties;

(ii) the results of due diligence of the Properties being satisfactory to Revelo; (iii) receipt of the approval of the

Acquisition by the board of directors of Revelo; (iv) receipt of acceptance by the TSX Venture Exchange (the

“Exchange”) of the Acquisition and the Placement, including the listing of the Revelo Shares on the Exchange; (v)

completion of the Placement; and (vi) no material adverse changes will have occurred in the Properties.

 

This news is really nothing, feels like ALS has another Millrock

[hohi]

I don't feel the same way as you. I think this is material as it shows that even in this environment ALS is able to attract partners to fund exploration on their mineral lands. And it is especially encouraging to see them doing deals in Chile. This was years in the works and maybe it doesn't matter anything to you but I see it as good progress being made on the Chilean side of the business.

[ItsAValueTrap]

I don't feel the same way as you. I think this is material as it shows that even in this environment ALS is able to attract partners to fund exploration on their mineral lands. And it is especially encouraging to see them doing deals in Chile. This was years in the works and maybe it doesn't matter anything to you but I see it as good progress being made on the Chilean side of the business.

 

I largely agree that it's a good thing whenever Altius makes these deals.  However, Revelo is TSX Venture listed and has around $3M in cash.  Unless gamblers get excited about the TSX Venture again I'm not sure how much money Revelo can raise for exploration.

[hohi]

Sure you have to be pragmatic about this... there is a high probability that nothing will come out of this deal and exploration effort. But that's exactly the point of the prospect generator business model. I am sure that if this tiny company doesn't comply with the minimum working agreements (x meters drilled, x money spent etc.) then it'll go back to ALS and then to another company that spends the dollars.

I just see it as a general sign of progress. But I get your point and agree. Problem is that these days the large commodity powerhouses cut back exploration spending to almost nothing. It would be truly amazing if ALS could land a deal with one of the big ones.

[nostradamus]

I'm not sure I fully understand the press release on the Revelo deal. Who gets the 2,659,574 common shares that Revelo will issue? Are these being given to BLC as payment for the properties, with the promise of 500,000 more on finalisation of a feasiblity study?

 

Taking a look at Revelo makes me wonder whether ALS might try to take them out at some point in the future. ALS have been trying to build up a land position in Chile and acquiring Revelo would be a quick way to do it. Looking at the Revelo website they had $3m cash at the end of 2014 and a burn rate of $2m a year, so they may need an income rich parent to keep going.

 

Also, on the subject of companies related to ALS. It is interesting to see that after the Kobex stake was transferred from Cranberry to ALS, Van Eeden has continued to buy more Kobex and also Chad Wells put some money in. I'm really interested to find out what is going on here...

(https://www.canadianinsider.com/node/7?menu_tickersearch=Kobex+Capital+Corp.+%7C+KXM)

 

N.

 

 

[TwoCitiesCapital]

I'm not sure I fully understand the press release on the Revelo deal. Who gets the 2,659,574 common shares that Revelo will issue? Are these being given to BLC as payment for the properties, with the promise of 500,000 more on finalisation of a feasiblity study?

 

Taking a look at Revelo makes me wonder whether ALS might try to take them out at some point in the future. ALS have been trying to build up a land position in Chile and acquiring Revelo would be a quick way to do it. Looking at the Revelo website they had $3m cash at the end of 2014 and a burn rate of $2m a year, so they may need an income rich parent to keep going.

 

Also, on the subject of companies related to ALS. It is interesting to see that after the Kobex stake was transferred from Cranberry to ALS, Van Eeden has continued to buy more Kobex and also Chad Wells put some money in. I'm really interested to find out what is going on here...

(https://www.canadianinsider.com/node/7?menu_tickersearch=Kobex+Capital+Corp.+%7C+KXM)

 

N.

 

Might be time to add a speculative position. Both Altius and Van Eden have a pretty decent track record with this sort of thing and Altius has the money to take them out and would actually benefit them to do so.

[ItsAValueTrap]

Van Eeden still buying shares of Kobex as of the end of April.

 

https://www.canadianinsider.com/node/7?menu_tickersearch=kxm

[GrayFan]

Altius Acquires Stake in Evrim Resources Corp.

 

http://www.newswire.ca/en/story/1531083/altius-acquires-stake-in-evrim-resources-corp

[TwoCitiesCapital]

Altius Acquires Stake in Evrim Resources Corp.

 

http://www.newswire.ca/en/story/1531083/altius-acquires-stake-in-evrim-resources-corp

 

Interesting - I've been waiting for my order for Kobex shares to fill but it doesn't trade much. Maybe I've been speculatively trying to purchase the wrong one.

[TwoCitiesCapital]

http://www.newswire.ca/en/story/1531081/altius-acquires-stake-in-avrupa-minerals-ltd

 

Altius making more investments. U.S. shares are up on extremely high volume today. Might be on the basis of this announcement?

 

Avrupa announced the results of their drill program back in December and the shares more than doubled trading up to 0.375 CAD per share. They're now at 0.11 CAD so it doesn't seem like a bad place for Altius to enter if the results for that positive...

 

http://www.stockhouse.com/news/press-releases/2014/12/19/avrupa-minerals-shares-double-on-initial-drill-results-from-kosovo-video-news

[Gamecock-YT]

http://www.newswire.ca/en/story/1531081/altius-acquires-stake-in-avrupa-minerals-ltd

 

Altius making more investments. U.S. shares are up on extremely high volume today. Might be on the basis of this announcement?

 

Avrupa announced the results of their drill program back in December and the shares more than doubled trading up to 0.375 CAD per share. They're now at 0.11 CAD so it doesn't seem like a bad place for Altius to enter if the results for that positive...

 

http://www.stockhouse.com/news/press-releases/2014/12/19/avrupa-minerals-shares-double-on-initial-drill-results-from-kosovo-video-news

 

Isn't this and Evrim just stock Callinan had or am I missing something?

[TwoCitiesCapital]

http://www.newswire.ca/en/story/1531081/altius-acquires-stake-in-avrupa-minerals-ltd

 

Altius making more investments. U.S. shares are up on extremely high volume today. Might be on the basis of this announcement?

 

Avrupa announced the results of their drill program back in December and the shares more than doubled trading up to 0.375 CAD per share. They're now at 0.11 CAD so it doesn't seem like a bad place for Altius to enter if the results for that positive...

 

http://www.stockhouse.com/news/press-releases/2014/12/19/avrupa-minerals-shares-double-on-initial-drill-results-from-kosovo-video-news

 

Isn't this and Evrim just stock Callinan had or am I missing something?

 

Good point. I thought that the acquisition of Callinan had closed a little while back but it looks like it was acquired on the 5th which was the same day Callinan deal closed so it makes sense that Altius is now recognizing their investments as their own. Thanks for pointing out.

[Guest Dazel]

 

Ben Graham was asked in an enquiry about the stock market worked with the question "how he knew that stocks would rise to his appraisal value?" His answer was that the process is a mystery even to him other than at some point value was realized...and then to the famous line the market is a voting machine in the short term and in the longterm a weighing machine.

 

Altius is being weighed it is not moving on news.

 

Dazel.

[Gamecock-YT]

Interesting snippet in the FT today from the CFO of Vale on iron ore:

 

“We are seeing . . . the early days of a segmentation in the market,” Mr Siani told the Financial Times. “We have a lot of oversupply of more standard ore . . . but we are seeing very robust premiums for high quality ore.”

[TwoCitiesCapital]

What is going on with ALS? Up 6% on Friday and another 9% today - extremely heavy volumes and no news? Some major announcement coming?