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Americas Bullion Advances Planned Reorganization; Agrees to Acquire Assets of Kudu Partners, L.P.

06.01.2014  |  Business Wire
Americas Bullion Royalty Corp. (TSX:AMB) (the “Company” or “AMB”) is pleased to announce it has entered into a binding letter of intent (“LOI”) to acquire the securities portfolio (the “Portfolio”) of Kudu Partners, L.P. (“Kudu”) from Kudu, a private hedge fund, in exchange for AMB shares (the “Transaction”). The Portfolio, estimated to have a current market value of approximately $21 million, is composed of cash, marketable securities and certain illiquid securities.

The Transaction is a final step in the Company’s change of business as contemplated under the corporate reorganization plan announced on December 17th, 2013. William M. Sheriff will continue in his role as Chairman & Chief Executive Officer. Negotiations are underway with William A. Lupien to direct the management of the Company’s securities portfolio following the corporate reorganization.

With the acquisition of the Portfolio, AMB expects to bring together a talented team to create a unique corporate entity that combines royalties, equity holdings, a reinsurance business and innovative investment strategies. This unique, non-traditional approach creates a diversified investment company with significant upside potential that will be well-positioned for future growth by capitalizing on access to capital and markets not typically available in the resource sector.


Kudu Partners L.P.

Established in 2005, Kudu is a private hedge fund based in Liberty Lake, WA. Founded by William A. Lupien, the fund has focused its investment strategy on the resource sector. Its holdings include cash, marketable securities and certain illiquid securities. Currently, the largest non-reportable holdings in the fund are: Midway Gold Corp. (AMEX & TSX:MDW); Bioasis Technologies Inc. (TSX.V:BTI); Orex Minerals Inc. (TSX.V:REX); and Maya Gold & Silver Inc. (TSX.V:MYA) among various holdings in more than 20 companies. A complete list of reportable holdings for Kudu can be viewed on SEDI under Kudu’s insider profile at www.sedi.ca.

“This acquisition of the Kudu Partners securities portfolio is in keeping with our intentions to expand and diversify our asset base, and is possible as a result of our recently announced corporate reorganization,” said William M. Sheriff, Chairman & CEO of Americas Bullion. “In 1993, I worked at Mitchum, Jones & Templeton for Bill Lupien and have served on several Boards with him since those days. I gained a keen appreciation for his exceptional market sense and trading ability, and I am looking forward to combining our efforts going forward.”


Mr. William A. Lupien, Kudu Investment Manager

For over 45 years, Mr. William A. Lupien has been an innovator in the public financial markets. His career in the securities business began at the California-based brokerage firm of Mitchum, Jones & Templeton (MJT), Inc. in 1965, where he eventually served as President. In 1983, as CEO and Chairman of Instinet Corporation, he successfully expanded the market reach of the world’s first electronic stock trading system. As Chairman and CEO of OptiMark Technologies Inc. he co-invented the OptiMark block trading system designed for stock markets around the world. Since 2005, Mr. Lupien has been the investment manager of Kudu.

Mr. Lupien served on the Securities and Exchange Commission’s Advisory Committee dedicated to the development of a national market system and also served as a Governor of the Pacific Stock Exchange. He has previously served as Chairman of Instinet (1983 – 1989), MJT (1989 – 1996), and Optimark US Equities Inc. (1996 – 2001), and as Director of Energy Metals Corp., Gold One International Ltd., Uranium One Inc. and Midway Gold Corp. He is the co-author, with David Nassar, of the book Market Evaluation and Analysis for Swing Trading, and is a co-author of several papers on trading technology and early-stage company evaluation. Mr. Lupien is also a co-inventor of multiple patents related to electronic securities trading. He is a graduate of San Diego State University.

“I look forward to working with Bill Sheriff and his team to advance our innovative business model in the resource and reinsurance sectors. This collaboration of investment strategies has the potential to provide a diverse portfolio well-positioned for future growth,” said William A. Lupien, Investment Manager of Kudu Partners. “I have always found Bill Sheriff to be a visionary who is not afraid to explore new ways of doing things, which is an essential leadership trait in a changing environment.”


Terms of the Transaction

Completion of the Transaction is subject to, among other conditions customary for a transaction of this nature, regulatory approval, including the approval of the TSX, satisfactory due diligence by each of AMB and Kudu, execution of a definitive agreement, AMB shareholder approval and the completion of the Transaction by no later than March 14, 2014.

The final acquisition price of the Portfolio will be determined at closing based on the market value of the marketable securities and the fair value of the illiquid securities.


Americas Bullion Royalty Corp.

Americas Bullion Royalty Corp. invests in undervalued natural resource assets seeking to provide superior investment returns. Americas Bullion’s assets include royalty holdings across North America, primarily in Nevada; the Springer Tungsten Mine and Mill; the Carlin Vanadium project; Taylor mill and Humboldt mill site in Nevada; the Brewery Creek project, and a portfolio of Yukon exploration properties. The Company provides shareholders with the potential for exploration success through equity positions in related companies while continuing to advance and monetize its holdings. The Company has announced a corporate restructuring plan which, if approved by shareholders, will see a change of business primarily directed towards royalties and equity investments in the resource sector as well as an active insurance/reinsurance business.


No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Americas Bullion’s plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Americas Bullion assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.



Contact

Americas Bullion Royalty Corp.
William M. Sheriff, Chairman & CEO
208-635-5415
info@aubullion.com
www.aubullion.com
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