Undoubtedly the Sorby Hills project has value. It is in an awkward stage of finding finance in a time of credit crunch, and investor sentiment is poor. Posters are blaming management for the stocks performance. Probably the weakness will continue till something material happens.
Celsius Resources has had a take over offer by a Canadian silver miner, thought it interesting and of relevance. Hopefully they get better offers. This I copied from another post on Celsius thread, originally fron Fareastcapital.com. I understand SVM has silver lead and zinc mines in China, so the Philippines would be OK for them.
"4. Celsius bid, a stepping stone to development. Celsius has entered into a takeover agreement (wto be bya scheme of arrangement) with a TSX-listed company,Silvercorp Metals Inc (TSX:SVM) whereby that company will buy all the shares in Celsius at 3¢ a share. It is essentially a scrip bid i.e. 90% of the consideration will be shares in Silvercorp, and 10% in cash. That values Celsius at A$56m, on the day of the release.Concurrent with the takeover transaction, Celsius shareholders will receive shares in a new company called SpinCo, via a distribution in specie of the second string copper project in the Philippines, Sagay, and the Opuwo Cobalt Project in Namibia. SpinCo will list either on the ASX or AIM.Thus Celcius shareholders will end up with shares in two companies; Silvercorp and SpinCo. One will develop the MCB Copper Project in the Philippines, and the other will advance the Sagay and Opuwo Projects.Silvercorp will be providing placement funding for Celsius ofA$5m for MCB, at the price of 1.5¢ a share, and Silvercorp subsequently intends to invest A$4m into SpinCo.Importantly, Silvercorp is strongly capitalised at US$607mon the TSX, and at 31/12/22 it had cash and cashequivalents of US$210m, and equity investments ofUS$121m Comment - a pragmatically positive move The gut reactions to something like this will always be “why so complicated”, and “what does this all mean”? It is a scrip takeover bid but shareholders still hold equity up side through a TSX listing, which may or may not suit investors.However, Silvercorp is more than 10x larger that Celsius,so the leverage to the MCB Copper Project is materially diluted by the current Silvercorp portfolio of other projects.One needs to look at these and decide whether or not they have merit.At the very least, the merged company should present a lower risk situation owing to the stronger balance sheet and the better ability to finance the development of MCB. You can see the logic. If they don’t like the deal, shareholders can vote it down before it goes to court for approval under the scheme of arrangement regulations, but that would not be a sensible risk strategy. After all, how many financiers would throw money for development of a project in the Philippines, owned by a $50m size ASX-listed junior? The proposed corporate strategy is a pragmatically positive initiative.Moving Sagay to a separate vehicle helps keep leverage with shareholders to what could be a substantial copperproject, albeit at an earlier stage than MCB. Any commercial success on MCB, by Silvercorp, would have a positive rub-off on SinCo.So, MCB will be largely de-risked on the dilution front with development that would seem better assured, while the speculative flavour is preserved for the punting typeinvestors in SpinCo. You can see the merit.The Bottom Line Celsius has been a highly-levered, unloved junior copperstock operating in an exotic location, with limited access to equity funding. It needs to escape from the < 2¢ level of purgatory. This scheme is a way of doing that and avoiding further survival placements at the bottom of the trading range. A deal that delivers TSX stock won’t appeal to many ASX focused investors, so there will probably be size ableselling over coming weeks with many people not waiting for the better priced paper component of the deal. There are plenty of other stocks, selling near cyclical lows, to which money can be deployed.
Disclosure: Interests associated with the author owns shares in Celsius and have received capital raising fees."
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