Rusoro Mining: The End Of Its Litigation Saga Appears To Be Near
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Dan Stringer3.48K FollowersFollow5ShareSavePlay(8min)CommentsSummaryRusoro Mining stands to recover $1.52 CAD/share from its Venezuela settlement, a 58.5% premium to current prices.The settlement includes $400M USD cash, a $650M USD convertible bond with >10% imputed interest, and Amber Energy warrants.After deducting fees and liabilities, the fully diluted value is $1,044M CAD, with significant upside if Amber monetizes or retires the bond.Primary risk is the CITGO auction not closing, but the structure and bid process favor Elliott/Amber over Gold Reserve's challenged offer.
Getty Images The fog around the Rusoro Mining (RMLFF) (RML:CA)’s settlement with Venezuela may finally be coming to a close. Since the original nationalization of its gold mining operations in 2011, the long, winding odyssey of litigation, including theThis article was written byDan Stringer3.48K FollowersFollowI am interested in small capitalized companies with a high optionality to the upside compared to the relative downside risk. I am grounded in a value based approach but will also explore special and short situations. I am a trained CPA and continue to practice in industry.Warning: my twitter account is very random but will have a lot of economic and business items sprinkled with Green Bay Packer comments.Analyst’s Disclosure:I/we have a beneficial long position in the shares of RML:CA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.