why cascade coal t/o may be an excellent deal

Based on the report by Southern Cross Equities of 30 November 2010 on the White Energy Web Site under investor.
White Energy will pay $486m for Cascade Coal mostly in issuing shares at min $3.50. That is the equilivant if $2.80/t for 173.7Mt resource at Mt Penny but see below.

" We believe that the current resource for Mt
Penny covers only a small part of the tenement and will grow over time. Initial estimates by Cascade Coal open cut mine suggest a resource target of c.500Mt, which implies a
price closer to $1.00/t."....says Southern Cross Equities.

With the average Australian coal company tading at $2.60/t the deal may be fine for the White Energy Shareholders.

http://www.whiteenergyco.com/investor/analyst-coverage/growing-diversified-coal-compa.php