The directors might need to get third party expert advice to cover themselves if they are intending to reject any offers and to determine fair value for an offer they are prepared to accept. We might be going through this processes at the moment which would take time.
If the directors decided to recommend/accept the offer it may not need to go to a shareholder vote under ASX listing rules if ASX waive the requirement.
ASX imposes a 50% rule of thumb to determine a companies "main undertaking" and to determine if listing rule 11.2 (ie a shareholder vote) can be waived. You can read about this test on pages 6 and 7 of the below ASX guidance note.
https://www.asx.com.au/documents/rules/gn12_changes_to_activities.pdf
I personally hope we reject any offer and see out our two joint ventures at Springfield to their full extent. Under the existing mine plan, pay-back of the mine CapEx happens in 18 months from commencement of mining which is targeted for Q4 CY2018 and we get all the cash flow from the mine within 30 months. There is little sense in getting this money upfront unless the company has a pressing need for it to develop other projects. Why would we want to miss out in the potential of expanding reserves at Monty and any potential game changing new discoveries that might be made on these tenements?
As far as value goes Sinclair remains a strategic asset for any company with Ni resources in that area. Just from memory the processing plant cost Xstrata about $200 million to build. That sort of CapEx is a very big barrier to development for companies like SGQ who are trying to develop economic Ni resources in the region. TLM hold a big card in this area, it's just that they haven't played it yet.
In my estimation Sinclair alone would still be worth upwards of the price paid for it, ie well north of $10 million in a fire sale situation, and much much more if it can be leveraged with the discovery or acquisition of minable NI resources.
Also most companies who can develop a half baked project in the Cobar region tend to get valued by the market at about $20 million, just for playing in the sand pit. If TLM can get to a resource drilling stage they could make a real asset at Lachlan and eventually eye the processing plant and ground at Mineral Hill which I believe still remains in the hands of receivers and managers. They could do what KDR failed to do, own and operate a mine and this could all happen within a few years if they can get a good deal on Mineral Hill and prove up additional reserves. It's obvious that Mineral Hill is the piece of the puzzle that is missing in TLM's plan.
I'd love the opportunity of continuing to invest in a company that has cash flow from mining, very few shares on issue and retains all three assets which could potentially all become mines, even if the big rewards don't come straight away. I'm hoping the directors see it my way and we can give SFR the big Chiko. Esh
View attachment 1132387
(20min delay)