I'm thankful that Cronimet have agreed to the price that was original outlined. The share price of 9c is very real in that their value for the JV was calculated to be around $30m NPV. The market cap based on the share price at the time was trading around 30% of the NPV. That's how they came up with the $ value of $7.5mUS. The 9c price was set by the deal with Oaktree.
If it was set by the current share price, there would be a further 130m shares on issue.
I have said it before and I'll say it again. The two parties (apart from current management) that know the most about the two mines and future strategy plans of the company were happy to convert equity and put in $25m at 9c. Tells you a lot.
EQR Price at posting:
4.9¢ Sentiment: Buy Disclosure: Held
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