With TKM at .055, Edge shareholders would be getting around .12 value per share. Better off floating rather than giving up the jorc manganese deposit of 11mt @15% for $2.8m in TKM shares, or sell the project outright.
There is about 8 leases of around 448 kmsq, plenty of it unexplored, so worth more than $2.8m. SPI spent about $3m just on dipole dipole in the months before shelving the manganese project in 2013 because of the collapse in mn prices at the time. There are drill ready targets that were never followed up back then after SPI raised the cash to do so but management chose to only undertake 1,100m of a planned 10,000m drilling program.
TKM are calling it a forgotten Pilbara battery metal deposit. It wasn't forgotten, just ignored by BDC management for many years, now the same management team want to get it cheaply for another of their companies, TKM.
I'm happy enough for TKM to acquire it at true value through shares, cash or a combination, but the project is worth more than $2.8m.
BDC put a low value on it initially by only giving holders 1:13 Edge shares in BDC prior to the doing the horrible SBM merger deal at just $50 per oz.
Now they want to give it away to TKM. Just ipo the project and get true value for Edge shareholders.
BDC Price at posting:
52.0¢ Sentiment: None Disclosure: Held
