re: Ann: Acquisition of European Tin, Tungste... Yes, it...

re: Ann: Acquisition of European Tin, Tungste... Yes, it definitely is good to see EQH rouse from its slumber.

The deal they have put into the company looks very interesting also. The commodities involved are definitely metals where you would want to be in the resource space and the assets are at an advanced stage of development. Some check drilling and additional follow up work should be sufficient to make the resource JORC compliant and the resource is already rather large with plenty of upside.

The location of the deposits is excellent with close proximity to the car manufacturers and solar panel makers in Germany who could be future consumers of the products and perhaps even strategic investors. It was interesting to note that there was no cheap placement announced. This makes me think that they expect a higher price before looking to raise funds.

EQH has a lot going for it – a VERY tight capital structure, seasoned investors, and strong management. There is very little stock around which is both a positive and a negative. Should someone want to get set in size, the effect on the share price will be dramatic, yet this also makes it difficult to trade the stock. Perhaps the best way to play it for those interested is to buy a few and just put them away. When the “button is pressed” the stock will motor.

I also draw your attention to the following link I found on the Internet: http://www.fox-davies.com/media/52002/eminitiationnotemastercopy.pdf

It seems as though this asset was going to be AIM-listed but for whatever reason the deal didn’t go ahead. The asset is worth in excess of $2 billion in the ground, so I guess the $25m touted as the valuation for the projects seems fair. A $25m cap with about 38m shares on issue following the vend equates to about 65c for EQH. Once they start to confirm the prospectivity of the leases, this will also seem cheap.