- - Until July 2016 SVE CN has been nothing more than an Empty Shell (see Filing Statement - English Jul 18 2016 - 19:53:22 ET - Page 16)
- - Starting May 2016 SVE CN decided to enter the Mining Business and acquired Mining Properties in 2 ( 1, 2) transactions (Spending $2m)
- - Over the last 40 days, the Price Per Share increased by 7,775% (What a Pump) and Market Capitalization has now reached $91.78m (*Including the 10,000,000 shares Private Placement announced on Aug 22, 2016 as well as the options granted to Officers, Directors and Consultants)
- - Aug 5, 2016 the company issued shares at $0.05 ( pre 3:1 split announced of 08/31/2016 ex-Date 09/01/2016 -> Meaning 25.5m shares at $0.016 post-split). Now SVE CN shares are trading at $ 1.05: someone made a fortune on this Pump. A return of 65.625x the invested Capital … or … $26,367,000 in Paper Profits!
- - Even On Aug 31, the company was still offering 10m shares at a post-split Price of $0.25.
- - The Company also granted options to purchase 930,000 shares (post-split) to consultants and advisors at a price of $0.33 (Expiration in 5 years)
1. How Many SVE CN shares are out there exactly?
As of Jan 31, 2016 (page 4) the total number of shares outstanding (pre-split 3:1) was 12,941,659 shares, or 38,824,977 share (post-split)
Per July 18, 2016 Press Release (page 31) SVE CN issued (pre-split) 200,000 shares to Anstag Mining Ltd (seller of the Margurete Gold Property) and proposed a private placement of (pre-split) 8,500,000 common shares, representing a total of 26,100,000 shares [ = (200,000+8,500,000) x 3]. Transactions were successfully closed as of Aug 5, 2016.
On closing of the Transaction, on Aug 5, 2016 the company also granted 1,853,332 stock options to certain directors officers and consultant with an exercise price of $0.15 (pre-split). This corresponds to 5,559,996 stock options with an exercise price of $0.05 (post-split).
The total number of Shares Outstanding as of Aug 5, 2015 (post-split fully diluted basis adj.) was therefore 70,484,973 shares.
Aug 22, 2016 SVE CN announced it was going to acquire 100% of Minera Terra Plata S.A. de C.V. for 6,000,000 shares (post-split)
In addition, SVE CN announced on Aug 31, 2016 another Private Placement Financing deal of 10,000,000 shares (post-split) at a price of $0.25 & that it had granted 930,000 (post-split) shares to Consultants and Advisors (with an exercise price of $0.33).
Including the information reported in the Aug 31, 2016 Press Release, the total number of SVE CN shares outstanding is therefore 87,414,973
[= 64,924,977 shares as of Aug 5 + 6,000,000 shares for Terra Plata acquisition + 10,000,000 shares for private placement + 930,000 options grant to Consultants]
At a price of $1.05 per share, the market is valuing SVE CN at $91.78m
Starting July 2016, the company has issued over 48,589,996 shares.
The $3,509,889.80 raised though equity issuance (assuming options are exercises) has zero to little value for Current shareholders since it will be quickly burned by the company (General Expenses etc.).
2. How much did SVE CN value the 2 mining properties it acquired?
2.1. The Marguerete Gold Properties (SVE CN valued it at $12,000)
May 20, 2016 the company announce that it has entered into an option agreement dated May 20, 2016 (the "Option Agreement") with Anstag Mining Ltd., a private British Columbia company controlled by Reza Mohammed, (the "Optionor") to Acquire a 100% interest in the Margurete Gold Property.
SVE CN Shares at the time of proposed transaction were trading at price below $0.01 per share. So, for 100% interest in the the Margurete Gold Property SVE paid $10,000 + 200,000 shares x $0.01 = $12,000
Silver One Resource Shares (Previous name BRS Ventures Ltd.) at the time of proposed transaction were trading at price below $0.01 per share. So, for 100% interest in the the Margurete Gold Property SVE paid $10,000 + 200,000 shares x $0.01 = $12,000
Even by just reading SVE Filings investors can realize how little value the Margurete Gold Property has. In 2015, Aldever Rerources Inc. (ALD CN, former name Glenmark Capital) optioned the the Marurete Property from Anstag and carried out a mineral exploration program on the Margurete Gold Property. Aldever terminated its option on the Margurete Property as of May 19, 2016
Maybe the interested readers might want to dig a bit further on the person behind the Selling Company of the Margurete Gold Property: Mr. Reza Mohammed ( Filing Statement - English Jul 18 2016 - 19:53:22 ET - Page 26)
Here a starting point for the interested & Curious Reader (How did the companies perform?): Expose Alderon Iron Ore Corp ( Link)
2.2. The Minera Terra Plata S.A. de C.V. Acquisition (SVE CN valued it at $2,040,000)
Aug 22, 2016 SVE CN announced that it has entered into an agreement dated August 22, 2016 with a subsidiary of First Mining Finance Ltd. ("First Mining") to acquire all of the issued and outstanding shares of Minera Terra Plata S.A. de C.V. ("Terra Plata"), which owns three Mexican silver projects.
SVE CN acquired a 100% interest in three significant silver assets from First Mining Finance (TSX‐V: FF) for 6,000,000 (post-split) shares for all 3 projects.
Aug 19, 2016 SVE CN shares trading price was $0.34, which implies a valuation of $2,040,000 for the "terra Plata" acquisition.
On July 1, 2014, First Majestic spun-out its wholly owned subsidiary Minera Terra Plata, S.A. de C.V. ("Terra Plata"), to Sundance Minerals Ltd.
"Terra Plata" is not worth much, even according to its previous owners. Per First Majestic Filings (page 23), Frist Majestic Received $3.4m in shares for 100% of "Terra Plata"
Per First Majestic SEC filings, as of December 31, 2015 (page 31) its stake in Sundance resulted from the sale of 100% of "Terra Plate" (now First Mining / FF CN) had a Fair Value of $4.1m USD based on the market Price of First Mining's shares at the time of the Dilution.
As of December 31,2015 (page 26) the Market Value of First Mining's stake belonging to First Majestic was approx. $3.5m
EVEN BY BEING GENEROUS it seems evident how the two Mining Assets acquired by SVE CN are not even worth close to $5,000,000.
SVE CN valued these 2 properties at $2,052,000 in total when performed the acquisitions a few months ago($12,000 for the The Marguerete Gold Properties and $2,040,000 for the Minera Terra Plata S.A. de C.V.)
3. Where does this leave SVE CN shareholders? Not in a good Spot.
SVE CN shareholders are left with approximately $3.5m in Cash (raised in private placements) and 2 properties valued at around $2m when acquired (in line with previous transactions valuations for these 2 assets).
BOTTOM Line is: Buying SVE CN shares at the current market Price of $1.05 per shares means valuing $91.78m something that's worth between 0m and 5m.
SVE CN bagholders … be ready for a
94.55% to 100% decline
in the Price Per Share of SVE CN