Yes, but that value just leapt 38% in past two days, so we gain the resultant market cap (if that SP holds, and continues to move upwards, and doesn't fall back), but lose out on growth on our current Australian holding. If we'd merged first, we would have actually experienced that 38% growth as 'Australian' holders holding First Cobalt.
This has already been discussed extensively by the other poster.
At the time of current entry, I believe the following to be correct:
ASX:CO1
Market Cap : 56.64 million (AUD)
Share Issue :566.38 million
First Cobalt
Market Cap: 43.0M (AUD)
Share Issue: 56,557,748
It is hard to find accurate market cap on First Cobalt, 20 sites have 20 different values, varying wildly, so I've gone with a combination of Google and Yahoo mainly to try and figure out what it really is. The easiest way was to multiply share issue by current share price which returned 43.0M AUD, as CAD exchange rate is 1:1 with AUD. I believe 43.0M to be roughly correct.
So what do we get for our potential merge? ...
62% or so shareholding of our existing shares in new entity. A loss of around 38% 'value'. The longer a merger drags on the more we may miss out on in terms of short term growth, or price could fall back a bit, but unlikely given what Cobalt price is doing.
$99.64M current combined market cap. (Let's call it $100M CAD/AUD)
100% of Yukon Cobalt extraction refinery
Keeley-Frontier Canada tenements.
LOI for all shares of CobalTech Mining Inc. (TSX.V:CSK), https://firstcobalt.com/2017/first-cobalt-signs-loi-cobaltech/
LOI to form a strategic alliance over 7 exploration in the Central African Copperbelt in Katanga, Democratic Republic of the Congo.
So in my eyes, it appears First Cobalt is positioning itself to be a potential Cobalt giant, however, later they themselves may become a further take-over target. They appear to have deep enough pockets and access to investment capital though, which is kind of rare (at least on ASX).
Did we get done over given current market movements? Probably.
Can it grow to a $1B or more operation? Maybe. So maybe 10x return of your diluted investment, plus whatever happens along the way. The hard part is getting an accurate comparison or idea of potential market cap in the year/years ahead...
