A Crazy Warrant Transaction & Junior Mining News


The Warrant Report
October 22, 2012

A Crazy Warrant Transaction & Junior Mining News

In this issue:

  • Sign up for our new Twitter News – Junior Mining News
  • Northern Miner Article on Soltoro Ltd
  • Crazy Insane Warrant Transaction on Gran Colombia Gold

New Twitter Account – Junior Mining News
We encourage you to join us on our new twitter account:
https://twitter.com/JrMiningNews

Northern Miner Article on Soltoro Ltd.
We bring this article to your attention as we are mentioned in the article recently released on Northern Miner. You may recall I was on a site visit with another group of analysts in September to some of the Soltoro’s properties here in the State of Jalisco. I am linking to the pdf document below. “Soltoro picks low hanging fruit in Jalisco”
Click Here


Crazy “Insane” Warrant Transaction
Perhaps you saw this news release on the purchase of 70,062,746 of the warrants trading on Gran Colombia Gold by Sprott Asset Management on behalf of their clients.

Best we can figure, with the warrants trading at around C$0.15, this represents a total expenditure of $10.5 million.

What do they see?

They, in my personal opinion, are totally insane on this transaction and this is NOT an investment but a total worthless expenditure, barring an unbelievable miracle. Allow me to explain.

The common shares of Gran Colombia Gold, TSX: GCM closed Friday at C$0.335.

The warrants trading under the symbol, TSX:GCM.wt, closed at C$0.14

Subscribers know from our detail provided in our Warrant Database, that the warrants will expire on 24 August 2015 and have an exercise price of C$2.60.

The common shares currently at C$0.335 and the warrants with an exercise price of C$2.60. Hello, what do they see, or rather, what have those highly paid analysts for Sprott overlooked?

They may have overlooked the fact that effective on 11 November 2010, the common shares of GCM and the warrants were adjusted to reflect a reverse split/rollback of 1 for 4. The initial exercise price of the GCM warrants was C$0.65 but now the adjusted exercise price of the warrant is C$2.60 which can be verified by the company’s website. In addition, with the reverse split the number of warrants outstanding did not change, but rather it now takes 4 warrants to buy 1 share of GCM at C$2.60.

The share price would have to increase around 800% just to get to the exercise price. This is a game that we do not want to play.

The bottom line to us is that this outlay of $10.5 million by the big boys makes absolutely no since. They must have other places to ‘throw away’ $10 million but they could start by subscribing to my services.

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We trust you are following us at
www.PreciousMetalsWarrants.com
and
www.TheGreedyGuru.com

Each service has its own different and specific approach to assist subscribers in picking the big winners.

“This train is not going to wait for you; you are going to have to jump on.”

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NO ONE ELSE DOES WHAT WE DO; NO ONE!!

We are personally striving for monster gains of 500%, 1,000% or more. This is frequently called a 10 Bagger and this is our goal. Sure, not every position will work out, but on balance, with some good money management and decisions as to what to buy, great gains can and we believe, will be achieved.

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We would also remind you of Dudley’s involvement and spokesman for The Greedy Guru. This service has a totally different approach and focusing on “The Top Picks of the Pros”

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Something to Remember:
  If you like a resource company and they have long-term warrants trading you owe it to yourself to explore this potential opportunity. Not all warrants will meet your test of length of time until expiry or the potential leverage thereon, but this is where we have done the work for you in our comprehensive warrant database. Not familiar with warrants, visit our Learning Center. A few warrants now have expiration dates out to 2017, five years, wow!!

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    Dudley

Dudley Pierce Baker
Founder and Editor

Guadalajara-Ajijic, Mexico

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