On the face of it, it looks cheap, but there are other elements to this. First of all, getting to a decision to mine will cost a lot more than $4MM. That number is almost just an option to have a good beak around the property. PFS and DFS will be needed. That would give ESS a NPV of what they have in their 25%. Would they go ahead if the NPV of the whole venture is under $100mm? I doubt it. So, in the event of some successful drilling and an eventual decision to mine, the 25% would be equal to just about the current MC of the company, or possibly a great deal more. ESS get to retain all gold prospects, and there is no mention of Cobalt in the announcement, even though Dave raved about it. Lets see, Dave reckoned that Blair was the company maker. He always lit up when he spoke about it....Lets hope he was right
ESS Price at posting:
15.0¢ Sentiment: Hold Disclosure: Held
