My valuation was that Tolukuma was probably worth 6 cents a...

My valuation was that Tolukuma was probably worth 6 cents a share to FNT at the moment. This was also always my exit price as an investor. This was an “in the ground valuation”and works out to be a valuation of A$50 million.

Given that Lole are saying that the entire area is worth US$250 Million, I believe that my valuation was fairly accurate.

It is a well known fact that in the event of a takeover, quite often the buyer will only pay about 20% of the actual “in the ground” valuation. Therefore, Lole Mining appear to have paid a little less than this amount for FNT’s Tolukuma tenement, which IMHO is fair enough, particularly given that a lot of FNT’s prospects were a number of years away from actually being called JORC “proven” resources.

My point about the mine being underwater is that it is highly likely that FNT already had the same problem. Indeed it was already reported that the entire area was very prone to mudslides. In fact a number of villagers recently died as a result of flooding and mudslides in the Tolukuma area.

To be honest, it is probably Lole Mining who are valuing the Tolukuma area a bit on the high side i.e. not me.

Let’s give it a rest with the blame game regarding Tolukuma valuations and focus on what we clearly can agree on i.e. the excellent potential of Gascoyne which IMHO will be far easier to value for a whole host of reasons.

Wishing you a pleasant evening.