QIS Update #4 - 2017 - Blue River Resources resumes trading, Fairmont Resources update, and Lingo Media signs merger agreement - March 27th 2017
Included in this update:
- Blue River Resources resumes trading, issues shares for debt
- Fairmont Resources signs quartzite evaluation agreement, seeks alternative financing for Grabasa acquisition
- Lingo Media signs Letter of Intent to merge with Vested Finance Inc. (Schoold app creator)
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Blue River Resources Ltd. (BXR:TSX-V)Website: www.blueriv.com
Current Price: $0.04 (coverage commenced Feb. 14/17 - $0.045)
Blue River Resources Ltd. resumed trading on March 16, 2017, after being halted for about a week due to the late filing of it's annual financial statements for the year ended October 31, 2016.
In addition, Blue River Resources Ltd. has agreed to issue two million shares in its capital to Mazama Minerals Inc. at a deemed price of five cents per share to satisfy cash payments totalling $100,000 due to Mazama pursuant to the option agreement with Mazama dated Feb. 25, 2013, as amended Feb. 25, 2015. These shares are subject to a four-month hold period. Pursuant to the option agreement, Blue River holds an option to acquire a 100-per-cent beneficial right, title and interest in and to the Mazama copper project in Okanogan county, Washington State, United States. The debt settlement is subject to TSX Venture Exchange acceptance for filling.
QIS Capital: While the trading halt was unfortunate, management was quick to file the financial statements and to work through the regulatory issues to be reinstated for trading in a timely manner. We are expecting to see some additional auger and trenching results shortly from ongoing operations at Okalla West in Cambodia.
Fairmont Resources Inc. (FMR:TSX-V)Website: www.fairmontresources.ca
Current Price: $0.07 (coverage commenced Feb. 18/16 - $0.025)
Fairmont Resources Inc., in connection with its Granitos de Badajoz acquisition, has elected to not proceed with a proposed financing from a European financing group due to certain discrepancies identified by the Spanish courts. As a result, Fairmont will be pursuing alternative methods of financing for the Grabasa acquisition. There is no assurance that Fairmont will be able to complete the financing required to acquire the Grabasa assets by the deadline of April 24, 2017
Fairmont Resources Inc. has signed a quartzite testing agreement with PCC SE to validate the chemical and thermal stability of Fairmont's Baie Comeau and Forestville quartzite projects in Quebec, as well to evaluate the commercial feasibility of a mining operation and logistics. Based on positive findings, PCC would look to test a larger volume of material in order to evaluate whether the quartzite may be suitable for use in PCC's silicon metal project in Iceland.
"We are pleased with the very expedient discussions with PCC and appreciate the common sense and up front approach with Fairmont," states Michael Dehn, president and chief executive officer of Fairmont Resources
QIS Capital: Is seems that our companies can't catch a break right now as this failed financing has caused Fairmont to take a temporary step back. We spoke with management Friday morning and there are a number of other potentially interested financing parties at the table. It was refreshing to hear a positive response following a disappointing result. Investors should also be reminded of the recent quartzite testing agreement with an Icelandic producer as well as regarding the development potential of the company's Quebec aggregate properties and its Rome lithium property. Fairmont only has 36.1 million shares outstanding and has a current market capitalization of just $2.5 million due to the recent sell off.
Lingo Media Corporation (LM:TSX-V)Website: www.lingomedia.com
Current Price: $0.33 (coverage commenced Mar. 22/16 - $0.76)
Lingo Media Corporation has announced that it has entered into a letter of intent (the LOI) with Vested Finance, Inc., the developer and operator of the leading, mobile college marketplace app in the US, Schoold, to complete a business combination (the Transaction). The resulting entity, which will continue as Lingo Media, will also retain the name "Schoold" for use within the college marketing and counseling market.
The parties are working towards finalizing a definitive agreement within the next 30 to 60 days with respect to the Transaction, which is anticipated to be a merger of equals in which shareholders of each party will acquire 50% of the resulting entity. Upon completion and execution of a definitive transaction agreement, Lingo Media will issue a subsequent press release containing more specific details of the Transaction, including a private placement financing to be completed concurrently with the closing of the Transaction.
Schoold, based in San Francisco, California, is privately held by Silicon Valley and New York investment firms including Social Capital and University Ventures, as well as by FastForward Innovations Limited (FFWD:LON), the London-based investment company led by Canadian entrepreneur Lorne Abony.
"Millions of learners across the globe aspire to learn English for the specific purpose of becoming qualified to study in English," said Joe Ross, President and CEO of Schoold, which features profiles of over 3,000 universities and has served over one million students. "Together Schoold and Lingo Media will be the premier education technology company providing best-in-class English language learning resources and connecting students everywhere with higher education opportunities in the United States."
"This merger opportunity positions Lingo Media to expand its international operations and its entry into the US higher education market," said Michael Kraft, President & CEO of Lingo Media. "We look forward to joining forces with Schoold and benefiting from Joe Ross's leadership and experience in the technology and education sectors."
Schoold is the leading mobile app for getting trusted advice on applying to university in the United States. With over one million served and thousands of rave reviews, the Schoold app functions as a higher education marketplace, connecting prospective students with colleges and universities. Recognized by U.S. News & World Report as a "must-have" app for international students, Schoold is democratizing access to higher education and helping students everywhere get smart about investing in their future. Schoold is available worldwide on iPhone, Android, and Kindle devices. Schoold is proudly built by Vested Finance, Inc., in San Francisco, California
QIS Capital: This is a significant merger for Lingo with another well established education company. The merger will result in a premier educational technology company and will provide Lingo with a significantly larger market to expand and pursue new business opportunities.