Some key points, Essentially, the farmin Partner will be a JV...

Some key points,
Essentially, the farmin Partner will be a JV partner in the North Rukwa licences only. They will, post the drilling campaign, need to stump up cash at their JV % (i.e. 50% of future costs). They do not participate in any upside from NHE's other licences.

This deal values those North Rukwa licences (in the eyes of the farminee) at $50m USD (i.e. $25m USD for their 50% stake, pre drill)... This would imply with 223m shares on issue at 17.5c today, i.e. mkt cap of $38m aud = $25m USD... That NHE is being priced at the farmin price... This is a bit crude as should be viewed at an EV basis (i.e. ex cash), which will be circa $20m USD all things considered.

So, the current share price does not value any of the other highly prospective licences, it doesn't value the $5m USD of cash coming for backpayment, or the current cash on hand, and it certainly doesn't value the prospective upside from the upcoming drilling (IMHO) ... Why can I make this statement.... The Farminee is stumping up $25m USD to buy the upside of two drill results. They have a view of what that upside is worth (chance of success multiplied by value of success)... And it will be no doubt be more than 10 times the $25 USD they are paying..... Time will tell on drill result. I see this as an opportunity to by head stock, I have seen the oppies as the better play up until yesterday, but the heads are just too cheap now. Could pull back to 15c I guess, that was the placement price... But that is stupid cheap based on the above, the company has done plenty to progress and lock in drill funding since it was at 15c...

GLTAH... DYOR..