Its unbelievable how there isn't much chatter on this thread - yet ... yet I guess being the key word there
The current structure for TIN (including the shares to pay for the acquisition) is as follows:
33m SOI
$1.8m Cash per 4C
$1.2m cash to be received for sale of their Tasmanian Mining Assets (17-April announcement)
So - presently at 17c its mkt cap is 5.6m with $3m in cash - so EV of only 2.6m
The genesis of TIN is that 3 years ago it was IPO'd as a shell at 20c and it has been on the hunt for blockbuster acquisitions ever since. It has taken a long time to find this one, being 3 years, and the initial investors have (for the most part) probably been the selling over the last 4 days given they probably gave up all hope of seeing their money again.
There are only 30m shares on issue (not including the 3m for the purchase yet, as they haven't been issued) and the last 4 days has seen over 50m shares change hands.
This exchange is presumably from those initial IPO investors who put their $$ in 3 years ago to new investors who understand that Uranium prices have just begun what will probably be a multi-year bull market.
This project in Utah, USA is in a Tier 1 jurisdiction
USA love uranium mining & Utah is considered the Uranium capital of the USA.
What's more, this acquisition is:
- High Grade
- Has Solid historical intercepts
- Excellent Infrastructure being (the only conventional, fully permitted operating mill in the US, located 50km to the south of the East Canyon Project via major highway adjacent to project)
Management are also keen to commence exploration as soon as humanly possible saying
"(Work program): On and from settlement, TNT shall commit a minimum of US$100,000 to immediately commence field work on the East Canyon Project, including rock chip samples, trenching, mapping, soil and channel sampling in preparation for a drilling program and evaluating of other potential acquisition targets in the surrounding areas."
Furthermore, Donald Trump is a huge advocate of Uranium and wants the USA to have an extremely strong Uranium sector and has committed to creating a US $1.5B Uranium Reserve:
"Over the past 12 months, the Trump Administration has demonstrated a strong desire to reinvigorate the domestic uranium industry in the interests of reducing the nation’s reliance on imported uranium and challenging the expansion of nuclear power development by Russian and Chinese companies. In July 2019, the Nuclear Fuel Working Group was established to advise on a strategy for returning the US to nuclear leadership. This was followed in February with an announcement proposing the creation of a US$1.5 billion uranium reserve through 10 years of purchasing US$150 million a year of domestic uranium production (approximately 3.75 million pounds a year at current prices)."
There is an easy comparison to GTR on the ASX for a similar stage, Uranium explorer in Utah, USA.
Presently, GTR has a market cap of 15m with 1.2m in cash - EV 13m
I believe over the extreme short term, that valuation discrepancy will close in a large way between the EV's of TIN (2.6m) v GTR (13m).
The selling by the original IPO holders who had their money locked up for 3 years waiting for this deal IMO is an absolute godsend. Thank you!
Expand
(20min delay)