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07:53
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Originally posted by RMInvest:
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The US$750M is an implied valuation - EUR and Sizzle are merging assets into a new entity called Critical Minerals Corp. Sizzle had ~$US160M in liquid assets and EUR has its Wolfsberg lithium project. Sizzle effectively then gets a 20% stake in the Wolfsberg project for a price of ~$US160M. When you consider then what the remaining 80% would seemingly be worth, ie multiply that price 4 times (4 x $160M = $640M) - you get close to how the $750M value is determined. The NPV in the DFS also influences the implied value.
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Funding secured yes this could take a couple years to get running but Lithium price is forecast to be 25% higher in 2026 and demand is rapidly set to increase leading into 2030 . The timing of this is perfect, now the mining lease is granted this project is on the cusp of being full steam ahead once funded. As you say not likely this will have a US $750m MC from this deal straight away. But it’s a given that market will value this a hell of a lot higher with this deal.
