Ann: Completion of sale of Eyre Peninsula tenements, page-5

Gerrado

On reflection I'm thinking that the Enterprise Value is less due tothe amount of amount held by the company which could be the $7M raised....!
So 5% onsay $2m = $100K Unless there is a way of valuing the assets at a higher levelthan the value of the shares they were issued for...?

Enterprise Value Calculation

Enterprise Value (EV) = MarketCapitalization + Total Debt – Cash

In order to calculate the total valueof a business a buyer would take market capitalization (#of shares x stockprice) plus all debt (preferred shares, minority interest, etc), and subtractcash. In other words EV is, in theory, the total price of buying a company.

An acquirer would be liable for thedebts of a company, making purchasing the company more expensive. Therefore,debt increases the cost of purchasing a company, and is an addition in the EVcalculation. Cash would be an asset that could offset debt or be absorbed bythe acquirer, so it is a subtraction in the EV calculation.

we take the $7m of cash away it only leave the assets we sold.....???