OTCPK:MEAOD - Post by User
Comment by
metcoalfanon Feb 07, 2011 11:30am
210 Views
Post# 18086873
I'm in
I'm inHave held a few shares for the last year, but adding significantly today and hoping it dips a little more. I was looking at an interview with the Sandspring CEO and was quite impressed with their model. Which got me to thinking about the deal they struck here. They paid 20 million for 20% of production - which suggests two things to me - one, they have confidence that MTO will actually get production going this time, and two, they view that production stream as being worth something in excess of 100 million (to pay 20 million for 20% of run of mine, plus the 500 oz but I'm ignoring that). Dilutive to MTO, yes; but the shares look to me to be an even better deal than the deal that struck by Sandspring given the current market cap. This one is reminding me of Avion 2 years ago - so cheap it almost scares you to buy in.