Timing is everything... ???
Noted this today... as I was skimming "uranium" related issues... from a company I found a while back, and have followed since. My interest was in their Brazilian operations, where they've been poking at a PGE occurrence they once touted as having higher than typical rhodium values. But, they shifted focus to uranium, when that got hot... and after the PGE thing showed them being a bit too fast and loose with the numbers... which had them upgrading the staff to get a better handle on such things... but not before dinking the shares.
Anyway... ValOre Metals seems they've wrapped up their uranium exploration interest now... after proving some decent success with the drill...
So, back to timing is everything... Yesterday:
ValOre Enters Into Definitive Agreement to Sell 100% Interest in Angilak Property to Labrador Uranium
That has them down ~15% on the day... Terms of the deal are... (i) CDN$3,000,000 in cash, and (ii) 100,000,000 common shares of Labrador Uranium.
There are 153.68 million shares of KVLQF, today at US$0.1439 a $23 million market cap ... and they have $1 million in debt. LURAF / LUR.CN had 70 milllion shares out before the deal... will be 170 million after... have a $16.4 million market cap today, after dropping from $0.29 to $0.22 yesterday... and N/A for debt and cash... meaning, they'll have to raise the cash somehow... to complete the deal.
Impossible to value the deal... or determine proper entry points... without knowing what the value of the property is... and, that's a bit of a moving target, just now, anyway, with the markets being a bit roiled, recently...
I have no idea what the property is actually worth now, or in its "future potential"... so, work to do on that.
I don't have to do the maths here to call it: "wait for it"... but, while waiting, might do the maths...
As KVLQF has basically no cash... the $3 million (if LUR succeed in the raise) should help them out a good bit... and prove timely... while KVLQF is really not losing the uranium property as much as gaining by it becoming more or less self managed and self funding... while retaining around 60% ownership...
Given markets are what they are... and as that is the way of the world in raising money requiring it be done in wholesale markets, with discounts applied... the "deal" advancing is likely to enable better entries than have been seen here in a while... |
