Hi yeppa27,Well i suppose in a simplistic way, what you have...

Hi yeppa27,

Well i suppose in a simplistic way, what you have said is sort of right about valuing the 2 mines at $100m. When comparing what NSL paid to acquire the 2 mines, this deal looks very good value to NSL. Also funding issues will now be a thing of the past, it should mean no more capital raisings, at all. I would be expecting further acquisitions to be announced down the track. The $100 million in funding will make certain of that.

Now that i have talked about a few of the good things to come from the announcement, i will try and explain why all this good news does not show in the market cap as yet. This announcement is only a heads of agreement. Execution of formal agreements is expected to be completed in the 4th quarter of this year. Unfortunately NSL has in the past, shown that they have not been able to keep to time frames in, well just about everything that they said before the last capital raising and share consolidation.

I can understand that sometimes things do not go according to plan, but alot of investors will remember these past failings and will be waiting until NSL can get their first shipment on a boat and over to China and start to show some revenue for their workings. The market cap at the moment is showing that this is a very speculative investment, or maybe gamble at the moment should be the word used.

Personally i am very happy with the announcement and feel that this is a great story unfolding, and while in the early stages, will provide a very huge upside IF all things progress as planned.

Hope this has helped you understand a little about this company, regards The Tinhopper