they have raised cash as part of the payment for the deal or for other investments.
Their timing IMO is perfect...
Let's look at the deal...
Purchase price c$165m / $0.66 ps
this against a project with an NPV $2.97bn..
Straight up... the offer is low (i would suggest 10% of NPV as a low offer so $297m, 50% higher as a minimum)
But since, high grade potash has been found in the HWS & also the opportunity to reduce upfront costs by a third c$580m.
Both of which not included in the PFS (NPV $2.97bn), so one could say the economics of the project would be significantly improved and the NPV would be substantially higher if the company were/had published an up to date PFS...
hmmmm ...
Then if you add to this..
The project area has only been explored by 10%...
One could say their timing is almost perfect, very astute, clever...
but bordering on ridiculous for ELM shareholders
K2P Price at posting:
43.5¢ Sentiment: LT Buy Disclosure: Held
