"market would value it at a slight discount to 100m. Any less...

"market would value it at a slight discount to 100m. Any less and there is a clear arbitrage, so would be snapped up"

Arbitrage is a risk-less profit made when an a trasaction of simultaneous buying and selling is made resulting in a instantaneous profit or a profit at a later date. Here there is no guarantee that the share price will exceed the cash in bank value, and there is no corrisponding trade that would remove risk. Because since this company is an explorer it is known that this cash reserve will be drawn down upon and therefore we know that that money won't sit in the bank untouched. MLM was trading at a 40% discount to cash and liquid assets at one point..
Bigdig