Jul. 17 at 2:04 PM
$METC given all the action with MP it is worth considering how a share sale - to the US government or the public markets or both - would work. The capital structure is comprised of ~40m shares of METC (80% A shares) and ~10m shares of
$METCB (20% B Shares) for a diluted share count of ~50m shares. These two share classes have equivalent voting rights however METCB has greater economic rights
The structure is as follows:
1)METC is the corporate holding company that owns everything
2) Within METC is an entity called CORE Resources which takes a ~3% royalty on all revenue, ~
$8 fee on every ton touched and licenses the patents for rare earths processing to METC - this is passive income with zero cost
3) METCB owns 20% of CORE Resources, collecting this passive income and distributing it as a dividend
The US government (or any buyer) needs to buy METC because that is what needs the capital for the Brook mine. They obviously also want METCB, which is where cash is returned to shareholders
