now for a valuation reminder, page-5

Accumulated operating losses can no be used to offset capital gains.

The carrying costs are probably around $30 - 35 million.

Remove that from the sales price and that is the amount subject to tax if no exchange.

If an exchange is undertaken the capital costs are irrelevant.

So to figure it out you need:

1. The sales price

2. The carrying cost

3. The cash they need for the share buyback

4. The cash needed for operating costs.

5. The cash needed for and drill plans

6. Hopefully they'll be smart enough to keep enough cash to pay off the notes.

Add the 30% tax on that subset of 'needed' cash less the prorated offset on the carrying costs and that will give you the max tax free exchange deal they'll be looking for if no debt or higher purchase price involved.

"This is a cashed up well run company.."

Cashed up yes, but for how long. And well run, don't take my word for it, but the market is telling you that you are wrong.

Wrong by a whole bunch!