Mr. Flood cycling up Mt. Ventoux in Monaco
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Concordia Resource Corp. - one of Canada's most puzzling metals equities - is gaining a DRC Congo nickel, copper and cobalt property and another, copper and gold, in Australia.
Concordia (CCN in Canada) explains that pending shareholder approval it also shall distribute shares of a new Argentina-focused explorer to shareholders. That's a spinout.
There is also exploration technology in the new mix, new names on the board and new shareholders.
In all, it looks like a complete makeover for a company that had grand ambitions venturing into South America, western Africa, Spain in a joint venture, the USA and Canada
- all in searches for early-stage projects.
The company used to be called Western Uranium, a sister of Western Lithium (WLC in Canada).
About 18 months ago, Concordia Chairman and founder R. Edward Flood was pointing to a challenging but bright future for the explorer.
"We have the opportunity to participate in the future growth of Western Lithium through Concordia’s 28% holding in the company. WLC is developing its potentially world class assets in Nevada, USA, for a growing battery market for the plug-in hybrid and electric automobile revolution," he told shareholders.
At the time, Mr. Flood added, "... how we generate electricity and how we store and utilize electricity will be primary themes for the company going forward."
Concordia just sold its Western Lithium stake, the company said. It received almost $3 million Canadian in what the company called "weak equity markets."
CCN now plans to shrink its shares by 80 percent. It will start using technology (electrical geophysical) from a company indirectly controlled by Ivanhoe Mines' Robert M. Friedland. (Ivanhoe is IVN in Canada.)
Mr. Friedland, a Singapore resident, will become a shareholder of Concordia via the transaction, Mr. Flood says. He and Mr. Flood, a well known geologist with more than 35 years of experience, are former colleagues.
Some of this - the technology pursuit, development in DRC Congo - was telegraphed earlier in materials either distributed to shareholders or on Concordia's Internet site.
Two of the other companies in this mix are 24-year-old Bugeco SA of Belgium and an Anglo-American PLC venture called Ambase Exploration.
See: concordiaresourcecorp.com/projects/africa/kkp_drc/
Concordia will distribute shares of a new company, Meryllion, which operates CCN's Providencia and Cerro Amarillo properties in Argentina.
There is a reverse takeover involved for listing purposes in Canada. Salman Partners of Vancouver is the sponsor of that.
Concordia will add board members, including longtime Ivanhoe Capital (mother ship of Ivanhoe, sort of) advisers, lawyers, accountants and supporters.
Aside from the WLC sale, Concordia will get $10 million in all this, half of that in cash and the other in a line of credit from its new partner.
Concordia also will issue more than 100 million new shares in exchange for the cash, the line of credit, parts of the properties and so on. CCN shares in Canada will stay halted until Concordia gets sponsorship for the reverse-takeover part of this, it looks like.
The purchase of assets from HPX TechCo -- the geophysical element here -- means Concordia, or the new entity, will pay management fees to HPX and also handle surveying costs for exploration properties. HPX says it has success in examining caliche soils, a sedimentary layer of cemented calcium carbonate found in hot and dry climates.
The property in DRC Congo is Ebende in Katanga and Kasai Provinces, south-central DRC. Ivanhoe's Kamoa copper prospect is in Katanga Province.
Ed Flood is a longtime Nevada geologist. He was a
central member of Ivanhoe Mines' Mongolia team 11 years ago. He will be a member of the new CCN board.
Mr. Flood lives in Monaco. His network includes well known industrialists such as Lukas Lundin and just about anyone on the (metals) geology front. His director slots are almost too many to mention, and they give him reach to vast pools of capital. Because of that, he spent time as an investment banker - at Haywood Securities in London. He also was non-executive chairman at Byron Capital Markets.
The planned Concordia CEO, Matthew Hornor, is a lawyer who long has been involved with Singapore's Mr. Friedland and Mr. Friedland's Ivanhoe companies.
Ed Flood says in a note, "Yes, technology is part of the deal. We would propose to utilize it to source JV projects. Mostly copper porphyrys."
He continues: "Matthew Hornor is going to be a great CEO. He has spent his time in the trenches, understands the business, has very good connections in Japan and Asia. (Matthew attended U. of Tokyo before law school in Virginia.) The board is a good mix of market and science."
Robert Hanson (SON OF THE LATE LORD HANSON OF BRITAIN) was on the Ivanhoe board for about 8 years, for example.
"Robert has good contacts in the UK. A great door opener.
Most of the management team have known each other for years as the companies shared offices in Vancouver. We have a jump start in Australia, good assets in Africa and a couple of very good ideas in Canada." says Mr. Flood,
I own shares in Concordia, largely because of Ed Flood. Whether new investors applaud the immense dilution that will occur when all of the transactions are consummated - remains to be seen.
