I've been trading CAP/O for the past couple of days and hold a parcel from 46.5c today in my trading account. If they fall tomorrow i'll probably put some in a longer term account due to the potential value of the deal.
I've just had a quick browse through the deal again.
I'll list a few figures I quickly crunched including approximately 25m options expiring at 30c in June which should bring in close to $8m leaving around 95m shares on issue.
$2m cash at last qtly $8m from exercised options $1m on signing the deal $4m over the next 3 months $25m on resource definition proven (I think August was mentioned as a target for completion in todays interview).
Total cash on hand later this year of $40m (if all goes to plan).
That leaves the company cash backed (using a $40m market cap) at todays closing price on a diluted basis using the above figures.
BMG will pay $8m towards exploration and a further $20m towards a BFS which should be fast tracked and completed within 2 years. On completion, a further $23m will be paid to Carpentaria and a 20% free carry to production.
I don't know much about their other products, but will do a bit more research over the weekend.
CAP Price at posting:
42.6¢ Sentiment: LT Buy Disclosure: Held
