My understanding was that they have only taken up an option to acquire the assets.
The purchase price will no doubt be considerably more than the ~$1m paid (again for the option and exclusivity period), especially given the guaranteed income.
The nature of the deal has yet to be finalised (should it go ahead), but given what has been said one would expect a solid capital raising in the form of a share issue to prominent Angolan interests (using CVI as a vehicle for the assets).
In such a case this will be dillutionary and carrying out an assessment based on the current shares on issue may be misleading.
I think given the Angolan interest to gain exposure to CVI the deal will be value adding to the company, but hard to assess until more details are provided.
Cheers SBC
CVI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
