Indeed, the market has totally missed the re-rating potential...

Indeed, the market has totally missed the re-rating potential here.

In my honest opinion, it is because the market doesn't take the Trans Metal Fund (LP) offer seriously. However, that is an incorrect stance considering the credentials of the individuals involved. Based on my research, It is evident that Trans Metal Fund is potentially a Canadian based vehicle for a Chinese buyer.

The announcement states Michael Boehm was one of the three individuals involved in the bid. He is one of the most renown lawyers in the mining merger and acquisitions space. I highly doubt he is personally investing into a mining operation; rather he is representing a Chinese buyer and this is based upon his previous legal representations in the M&A scene.

He has undertaken considerable M&A work for Zijin Mining ($68bn market cap) and Zhaojin Mining ($4.8bn market cap), both major players in the gold mining scene. Zijin operate the Timok mine in nearby Serbia.

Due to the involvement of Michael Boehm, I don't think the market should be sceptical regarding the capability of Trans Metal Fund to finance any acquisition offer. Fasken are pretty much the creme da la creme of law firms in the M&A mining scene.

Majority of China should return to work next Monday from Chinese new year. Hopefully that will facilitate some news from Minmetals Securities regarding the progress of the bids.