Maybe if you are only looking for 20cents you should ask yourself how will I get there faster?
Rejecting RMS’s offer (or let’s say sweetened offer, because I think they need to sweeten it a little to be fair) might lead to the share price pulling back below 9cents again and also lead us back to the same uncertainties around more capital raisings/dilution, mine funding and the timing before first production from the project.
If everyone accepted the offer and got their RMS shares, Mace could be in production within 6 to 12 months IMO and it would likely allow RMS to develop the stage 3 open pit at EM if ores from Mace and stage3 are compatible for blending, in which case RMS’s status as bona fide plus 200koz producer will be set for a few years to come, along with the cash flows this would bring. If a clear path forward becomes available for RMS at EM, the chance of it getting to 90cents in a year or two is probably greater than the chance that EXU will get to 20cents without the offer. What you might lose by accepting RMS’s offer now, you might gain back as the value is crystallised within that company.
All the good work EXU have been doing is costing money and dilution is a reality in this game. Also, we have not seen a clear funding proposal yet and with sentiment the way it is, it remains uncertain if a funding proposal will emerge or when it will emerge, what terms it will be on and whether it involves all debt or an equity/debt mix. If it involves an equity/debt mix the chances are the funders will get a bigger slice of the pie and it will cost existing shareholders through dilution, at least in the short term.
RMS can start mining Mace very quickly so the benefits of selling and owning RMS shares under such circumstance shouldn’t be overlooked here IMO. I think RMS need to come to the party with a sweetener to make people a little happier and then people jumping on board to own RMS shares can ride the transaction up as the project won’t be money constrained anymore. RMS can spend money quickly on upgrading all of EXU’s existing exploration areas and areas with resource expansion potential while mining Mace and moving their own mine at Edna May forward. It makes sense to own the Tampia Gold Project under the RMS banner IMO. Esh
