this does look interesting...bear in mind the below figures are...

this does look interesting...bear in mind the below figures are from Globestar's presentation within the news release, so make of it what you will:

Globestar made net profit US$9.5m for the six months ended 30 June, and PEM is paying approx US $182m (based on 1AUD=0.98USD). on annualised profit, works out to be 10%+ return on that alone.

Globestar has equity of US$81.7(assets of $132.7m less liabilities of $51m - down from 2009 liabilities of $58m)

On current reserves, Globestar has 8-9 years mine life.

Globestar has its own powerplant and is self-sufficient energy-wise.

Upside for Globestar is in exploration for other assets, including lithium, copper, and more gold.

However, hedging arrangements appear to have turned out to be greatly unprofitable. The covenants in the offer explicitly prohibit Globestar from entering into any more hedges.

Despite these hedges, Globestar is still profitable, and appears to currently be making similar profits to Perilya, which reported Profit Before Tax of AUD$10.953million for six months ended 30 June 2010.

I don't hold, however am watching this with interest.