Just listened to boardroom radio presentation on thsi...

Just listened to boardroom radio presentation on thsi announcment so have updated my earlier comment.

Announcement out today suggests PDZ undervalued. Ivernia spending $3 mill on exploration then paying PDZ $10 mill to get 60%. With an option to buy another 20% for $5 mill. This $5 mill could be further exploration and/or a feasibilty study.

So say $13 mill for 60% would value the project at $21.5.

PDZ market cap at current price 13.5 cents per share is around $10 mill. They have $3 mill cash.

It appears to me that Ivernai is buying into the base metals project only (not the whole tenament) so there presumably is some iron ore potential in other parts of the tenament that is upside.

So summary on a fudamental basis.
1. Project value $21.5 mill (assuming Ivernia exercises option) +
2. $3 mill cash +
3. Non base metals potential (i.e iron ore)
Total say $24.5 mill + iron ore potentail.

Current market cap $10 mill. So fudamental value 24.5/10 * 13.5 cents = 33 cents per shares + iron ore potentail. Which s obviouly a lot of upside.

Also from a news flow potential there are two positives.
1. Ivernia will be exploring for PDZ and therefore providing newsflow in tems of drill results etc.
2. PDZ are continuing to do due dilligence on other opportunities whcih will also provide newsflow one they choose an opportunity to invest in. Clearly now they no longer have primary responsibility for the exploration on the base metals side of things; so they can put their efforts and cash into something fresh and new.

Cheers
hots