Stockhouse.com: Taking it to the street
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Sprott will now own CCH in 9 funds
 
I was doing some more due diligence on CCH, reading some of the recent Sedar releases, and I came across this disclosure. This report is found in Sedar, it has the title “Alternative Monthly Report”, dated 2006-06-09 (June 9th). [from paragraph 7] The managed accounts of the Offeror holding Common Shares and Warrants include: Sprott Canadian Equity Fund Sprott Bull/Bear RSP Fund Sprott Hedge Fund L.P. Sprott Hedge Fund L.P. II Sprott Master Fund Ltd. BluMont Strategic Partners Hedge Fund Sprott Opportunities Hedge Fund L.P. Sprott Opportunities Master Fund and the Sprott Managed Accounts. The May 10th press release in Sedar reveals that Sprott increased their participation, and has acquired (will be acquiring) 125 million special warrants. Each special warrant equals one full common share and ½ a regular warrant. Remember we should not assume that all warrants will be exercised; Campbell has a “Call” provision. Sprott’s previous position (last 1-2 years) is revealed in the StockWatch “Holdings” screen. Prior to these placements shares in the following 3 funds/accounts. Their previous holdings were about 10 million shares. Sprott Asset Management Sprott Canadian Equity Fund Sprott Gold & Precious Metals Fund CONCLUSION: Sprott’s new investment in Campbell is a very significant commitment. And even more importantly, we now see interest from 9 different Sprott accounts. One of these “accounts” is what they call their “managed accounts” – I think that’s their broad group of private banking accounts. For every fund, there would have been specific interest and due diligence by the fund manager. This isn’t just John Embry, although he’s at the top of the chain here, this is the entire Sprott organization jumping in with very strong interest. And with this broad interest comes disclosure to investors and board members at every step of the way. In other words, CCH will become a household name at Sprott. I am quite sure that Embry will be touting Campbell in his interviews over the next 6 months (after every part of the deal closes). I woul;d be shocked to not see a favorable mention from Embry, in different interviews. There is no way in h_ell that Sprott would take a position of over 100 million shares if they didn’t feel there will be a market for CCH shares, in the single dollar range ($2 - $5), in 1-2 years. How could you even exit a position that big without sufficient depth on the Bid side? Sprott is looking forward to 4 operational copper/gold mines (Joe Mann, Copper Rand, Corner Bay, Cedar Bay), plus the “Chevrier” project on their backburner, plus 3 royalty streams (Discovery, Eastmain, Pitt). We should have a better quarterly earnings release soon. The next big news will be groundbreaking on the Corner Bay project. We should see first production from Corner Bay as early as April-May 2007.
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