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Copper – a Growth Opportunity with Downside Protection

Posted by nexvucapital on March 1, 2014

Rarely in the equity world does one find an opportunity to expose their capital to growth without the unfortunate burden of downside exposure – RISK.

We would like to hi-lite an opportunity in the Copper growth space which (subject to approval of the transaction) presents exposure to the copper cycle in a growth-oriented company that has strong financial backing and an instrument in place for downside price-protection over the medium to long-term. We have attached the Corporate Overview and an overview of the shareholder Put-Right protection.



Corporate Overview


  • Mercator’s existing shareholders will receive one put right for each existing Mercator common share
  • Each put right will entitle the holder to sell one common share of the combined company to the combined company at a price of C$0.10 (pre-consolidation price)
  • Exercisable during period between 18 to 30 months from date of issuance
  • Daselina, or designee, will deposit cash or an irrevocable letter of credit in the amount of approximately C$31.7 million with a trustee to be available to support the combined company’s put right obligations



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