RE: market cap sliced in 1/2 STM has over $5mm in cash. What mgmt should have done was take over Tigris Uranium before their RTO with Wolfpack Gold.
There are clear synergies between STM and TU properties. Both are focused on uranium exploration in NM and WY.
TU is trading at under $3.5mm market cap with cash on hand of over $8mm. STM could have easily offered $5mm cash and $5mm in shs to take out TU. This would represent a premium of over 100% to current market prices though it represents just a tiny premium over cash value. Why would they take just cash value? TU mgmt already tipped their hand when they valued TU at just $10mm in their proposed RTO with Wolfpack. I am certain that TU shareholders wouldn't be opposed to a special cash dividend and proforma STM shs... it beats the snot out of whats being proposed now.
For STM, the transaction would be accretive, not dilutive. 25% increase in sharecount but over 50% increase in uranium resource making it one of the largest undeveloped uranium portfolios in America. Cash would also increase from $5mm to over $8mm. As well, STM would acquire 10% of NexGen Energy (NXE) and I am sure STM can find a buyer in Dev's Fission Uranium (FCU).
Instead, these mgmt teams go and dilute their focus by picking up gold and copper projects.