Here’s how Louis Lobito Little Wolf James of Casey Research talked up Carpathian and got you all in:
- Carpathian Gold (T.CPN, C$0.29, 555M SO, 590.5M FD, C$161M MCap, www.carpathiangold.com)—
We’ve written quite a bit about this company. The bottom line is
simple: the company is trading at a discount to the value of the gold
mine, is on track to deliver on time and on budget in Brazil, and on top
of this, it has a huge gold-copper resource in Romania for which the
market is giving it no value. The stock will almost certainly rise based
on the former and could eventually become a 10-bagger based on that
alone, given the low starting point. It’s hard to put odds on the
Romanian blue sky, but whatever they are, free is a great price, and the
consequences of success with that project would be huge.
And here’s tonight’s news on the stock. Say buh-bye to the last vestiges of your CPN money, Casey Research subscribers:
Carpathian Gold Inc. Announces Restructuring
TORONTO, ONTARIO–(Marketwired – Nov. 20, 2015) – Carpathian Gold Inc. (CSE:CPN) (the “Corporation” or “Carpathian“) advises that, as a result of an agreement (the “Option Agreement“) entered into between Macquarie Bank Limited (“Macquarie“) and Brio Gold Inc. (“Brio“),
Brio has been granted an option to (i) acquire all of Macquarie’s
rights and interests in the project loan facility, the gold purchase
agreement and the gold sale and purchase agreement and related
guarantees previously entered into by Macquarie and the Corporation,
Mineracão Riacho dos Machados Ltda. (“MRDM“) and certain other subsidiaries of Carpathian (collectively, the “Obligors“),
and (ii) receive from Macquarie an assignment of Macquarie’s security
in respect of the foregoing agreements (all of the foregoing agreements
and the security are collectively referred to as the “Financial Assets“).Pursuant to the Option
Agreement, Macquarie has agreed to forbear from exercising any
default-related rights, remedies, powers or privileges, or from
instituting any enforcement actions or collection actions against the
Obligors under the Financial Assets until the earlier of (i) the
exercise or early termination of the Option Agreement and (ii) February
15, 2016. Under the Option Agreement, to the extent that cash flows from
the Project are insufficient to meet ongoing costs and expenses,
Macquarie has agreed with Brio to continue to provide funding to MRDM,
subject to the terms and conditions set out in the Option Agreement. Any
drawdowns requested by MRDM under the project loan facility remain
subject to the discretion of Macquarie.Furthermore, the Corporation has entered into an agreement with Brio and Macquarie (the “Restructuring Agreement“)
whereby the Corporation and Brio have agreed that, in the event Brio
exercises its option to acquire the Financial Assets under the Option
Agreement, the Corporation will work with Brio with respect to a
restructuring procedure to be initiated by Brio with the objective of
transferring 100% ownership of MRDM’s Riacho dos Machados gold project
in Minas Gerais, Brazil (the “Project“) to Brio (the “Restructuring“). Pursuant
to the Restructuring Agreement, Brio will deliver to the Corporation
and its directors a full release and discharge with respect to any
liability under the Financial Assets, including the Corporation’s
guarantee thereof. Following the Restructuring, the Corporation shall
continue to own its Romanian assets, but shall have no ownership or
interest in, or liabilities in respect of, MRDM or the Project.As well, upon closing
of the Restructuring, Brio has agreed to a US$1 million subscription of
common shares of the Corporation, the whole at a price to be mutually
agreed and subject to the requirements of the Canadian Securities
Exchange.