Colossus Minerals Inc COLUF

RE:for those of you playing along at home (please read)

[naeden99]

Your math is wrong.  They are effectively issuing ~10 bn new shares.  If you want to use the $75 mm number, then the valuation is $75 mm / (10 bn * .388) = $0.01875.  

But the real valuation is based on the price the new money went in at (the DIP).  Which implies the new co is worth $50 mm.  So 38.8% of that is $19.4 mm, which is the value of shares that Sandstorm is getting ($19.4 mm / (10 bn *.388) = $0.005/sh).

They are also getting a 2% NSR though.   In fact, you can calculate how much they value the NSR by comparing how much the notes got haircut vs sandstorm.

The notes were worth C$86.25 mm and were haircut to C$25.75 mm or 30% of their original value.
Sandstorm was haircut from US$75 mm  = ~C$80 mm to C$19.4 mm or 24% of their original value.  If they took the same haircut as the notes, they would have got ~C$24 mm.  So the NSR is worth approximately $5 mm.  In fact, its probably higher than this because the first US$10 mm of the Sandstorm stream was secured.

They must think there is some chance of getting this to production...