Hi guysA few interesting hypotheticals here. I don't think they...

Hi guys

A few interesting hypotheticals here. I don't think they would be using market cap valuations to finalize the merger - esp since PLA has not traded for six months. More likely to be based on physical assets and strategic tie ups! For instance there are a couple of broker reports floating around which suggest that JPL is worth around 40p per share. I don't think it would take much for Lewins to come up with a similar price for PLA as part of the negotiations.

From what I understand JPL really wants to get its hands on the smokey hills mill and mine. The rest of the projects is just cream. Strategically it makes sense, and with it come greater scale - and 'reading between the lines' I'm guessing they hope the market might re-rate the merged company?

Another key to the merger is getting new finance at the project level for smokey hills and JPL's tailings. JPL management have suggested that they have three interested parties.

Also worth noting is that JPL last issued shares on 14 dec at 7.25p. So I reckon this would be the highest value per share that Macquarie would accept for any equity conversion.

As far as market metrics go I am using the following:

PLA 500m shares and $25m debt to Macquire Bank (a portion to be converted to PLA shares at unknown value).

JPL 314m shares

Gus