still holding, page-19

Hi CUB,

Yes, I agree with you this is a very interesting case study indeed, hopefully it blossoms in my and other HS poster's direction.

I believe the previous board had to drop SBL at a "discount" was because of cash flow problems that they were experiencing before LG came into the picture, ie. with Infinity etc. Back then, I dont think the board was able to get another CR done which will dilute the already much diluted SP. Hence, Infinity came in to keep the company alive for the next few months which also led to LG's TO offer materialising.

Having cash flow problems is not the same as having a bad asset (ie. the gold deposits). I believe back then, SBL had cash flow problems but it does not mean they have a bad asset. I recall from your previous post you had mentioned that if the board could only allocate funds to exploration activities (especially deep ground exploration rather that surface which is only done at the moment), this might shoot the SP up north if they find any substantial deposits. Now that LG is willing to put in funds into SBL, hopefully a big chunk of this would go into exploration. Also, with the current gold sales, they might cover both opex and have a little extra more put aside for exploration.

I would conclude now that another superior offer wouldnt come in as yet, it might or it might not, I dont think the story is over just yet. But of course, ideally I am hoping for another more superior offer to eventuate.