SLR shares are worth 5 RED shares

The deal needs to be analysed in two ways.

1. Will the merger result in synergies so that the combined value of the two entities is greater than the value of two single entities? I can't say there are any apparent synergies in this regard.

2. Is the merger fair and equal to both parties? That depends on valuation of course, but given SLR is going to received RED shares it is necessary to compare the true value of SLR to the value of the RED shares to understand if there is underlying value that SLR shareholders are missing out on. Based on the valuation below it would appear that SLR shareholders are about to be ripped off if they only get 3.434 shares. Based on these assumptions SLR shareholders should be getting 5 Red shares for every SLR share.



This is a conservative value, given SLR has 4 million ounces in resources. Even 10% of these resources converted to reserves with a $1,000 margin would add another $400 million in value to SLR or value it closer to $3.

Given the jump in SLR share price over the last few days i think a higher offer could be on the table.

GLTA/IMHO