Note the following:- Assume that AceA do not convert their 40M...

Note the following:-

Assume that AceA do not convert their 40M options prior to the proposed IPO, then Gossan should have 232M shares on issue, with an additional 40M options - fully diluted 272M shares on issue

Factor in the additional 10M shares they plan to raise, brings it to 282M shares on issue

At 20c per share (the proposed price), this puts a market cap on Mt Adrah of $56M

Unless of course they have forgotten the increased capital structure, in which case it is roughly the 40M shares SOC has + the 80M of stock and options to AceA + the residual 13% holders still brings it out to 130M or thereabouts + the additional 10M to be issued rounds it off to 140M on issue or a $28M IPO valuation

I can't understand the valuation at all, especially considering SOC is currently valued at $16M - if the major shareholders are confident they'll get the IPO away, then surely they would be loading up on the parent at a minimum 40-50% discount to the proposed IPO valuation of just a single asset