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Bloke485

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02/02/18

18:23

Post #: 30781270
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Originally posted by Trask ↑

I think management has made a massive misstep in how it's handled the WGX option. It should have always been neutral and instead of talking about how good the lithium option is without any evidence supporting that position (if there was any it should have been shared with shareholders already), they should have been talking up TON assets and highlighting how attractive they are.

The announcement should have something along the following...

'TON has been approached by WGX to sell lithium assets valued by WGX at $30million in exchange for 357 million TON shares at 8.5 cents per share. TON management is undertaking due diligence before making comment on the option and has engaged blah to provide an independent valuation of the assets and to calculate the potential value of the royalty to determine if this provides value for shareholders etc.

Due diligence is expected to be completed by blah. Should the independent valuation determine the option is value for money, the Board may choose to exercise the option and put it to vote by shareholders on blah date.

This unsolicited approach by WGX highlights the value of TONs graphite assets and TON management remain committed to delivering those assets to production and value to shareholders as quickly as possible."

If it had been neutral and along those lines I might still have some confidence in the direction management are taking. I also think it's less likely the share price would be tethered like it is. The fact management have been so positive about this option before receiving any evidence to suggest it's a good deal, I think it's spooked possible investors from buying in at anything higher than 11 cents if management are seriously considering giving away 30% of the company when it's already undervalued.

If the share price had of re-rated to 15- 20 cents as it looked like it might pre-WGX announcement, it would be fair say giving away 30% of the company at a 50% discount would have been simply unpalatable to shareholders and TON management could have simply killed it off even before due diligence was complete since the Option is non-negotiable.

The price hasn't re-rated because of the WGX Option price of 8.5 cents for 357 million shares AND because TON management have talked it up, seemly without any evidence. A neutral announcement highlighting that WGX want into TON rather than us wanting their unproven lithium resources may have even seen this run further. Could have simply been free marketing to some of the insto's that WGX have on board. Basically, "we you know you want a piece of us so come get it because we're not giving it away."

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I am on board with this, have been for some time I can lend x00k votes to this motion. Its a YES from me!

TON Price at posting: 10.5¢ Sentiment: Sell Disclosure: Held
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I am on board with this, have been for some time I can lend x00k...

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I am on board with this, have been for some time I can lend x00k...

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