CKA should run well towards the progression of the LOI into a binding agreement. A $400m deal over approximately 4 years should see the MC exceed the current sub 50m valuation. As with any LOI there will be skepticism however its worth noting that this one is with the subsidiary of a $5b capped company unlike many of the rag tag outfits that other ASX juniors have been burnt with.
Chart wise 10c looks quite achievable, MC wise $100m wouldn't seem out of the question if the discount supports profit of $10-20m/year. An undiscounted sale at $US126 would translate to EPS of around 3.7c
