joe wanted out so their management must be better than the...

joe wanted out so their management must be better than the existing mob

their uranium tentements are ok just need some drilling

Main reason for merger was to get a bigger market cap making access to drill rigs and capital raising easier.

Both companies had a market cap of around 20m each. Combined thats 40m that said most of hte focus will be on mt bevan and the other assets GNL owns are mostly minority farm out JV where they have less risk. Still some equity if anything goes to mining stage.

Most of their efforts will be focused on iron ore ( and the gold tentements which show more potential than the iron ore imo) then theres the platinum, zinc, silver deposits as well with ABU.

the market caps were similiar but ELL had less shares on issue

so at ELL 20m market cap share price 8.1c
GNL at 20m market cap 3.4c a share

3.4c x 2.5 = about 8.1

GNL had 250% more shares on issue so to make a merger of equals they had to offer 2.5shares at 3.4c for every ELL share valued at 8.1c

I think u miss the mark oh and the GNL price was based at the price at the time which was 3.4 versus 8.1 ( however both companies have slipped since then)

My guess is down the track GNL will do a share consolidation reduce the amount of shares on issue and adjust the price upwards accordingly.