Ann: Vector Execute Key Documents for Adidi-Kanga Acquisition, page-66

i'm trying to be positive about this announcement and the transaction, but i'm struggling. here are a few numbers i have just crunched - you dear reader be the judge whether this is a good deal or not.

firstly the cost. if all goes well and adidi-kanga is mined successfully then vec would have paid mhi us$90m in cash and shares, and mhi will have 36% of vec if no further capital is raised. (all figures directly out of the ann).

secondly the value. using the mineonline valuation metrics i came to following value of adidi-kanga as it stands.


admittedly the project could be considered 'advanced exploration' but the value doesn't change until a bankable feasibility has been completed, then the value per oz jumps to $35


even at the development stage vec is paying too much - and they are paying for the bankable feasibility!

i did read a post questioning how management have been able to pull off a deal on what appears to be an amazing asset - maybe the difference between the project value and price paid is the answer?

have i missed something? if anyone has a better way to value the project then i'm happy to hear about it.