The issue here comes down to credibility....................We had an MOU with Ansteel. If I am not mistaken the MOU was signed in October of 2016, with aa estimated close date of 1st quarter 2017.
I must admit that I don't know the difference between an MOU and an "indicative term sheet" (ITS).
An indicative offer, also known as a letter of intent (LOI) or non-binding offer, is the term sheet used in a sales process which establishes a contractual negotiating framework between the potential buyer and the seller as they work toward a definitive purchase and sale agreement (PSA).
What I do know is that neither the MOU nor the ITS was signed and or finalized. Why should any shareholder or investor have confidence that the Sinosteel deal will be inked?
I agree that the terms are exceptional at face value. What I don't understand, is why this process is taking so long. I was shocked that LIO stock did not go up significantly the last couple of days, then I considered the source and the history of Lion One.
Closing of the facility is subject to satisfactory due diligence, board approvals and final documentation, with closing expected to close in the third quarter of 2018. What does all of that mean? Is the deal done or not? What will it take to push this through to the finish line? I suspect that our stock will continue to languish until A DEAL IS DONE!
Scarsdale: I have no idea how they are coming up with their price target, which in my opinion is laughable!
350,000 ounces over 7 years or 50,000 ounces per year. Based on $1,300 per ounce gold and total expenses of $800 per ounce.
50,000 shares times $500 per ounce EBITA = $25,000,000. Based on 100 million oustanding shares, Earnings of $.25 per share times a very conservative PE of 10, share price of $2.50
For every additional 10,000 ounces added on an annual basis earnings increase $.05 per share.
Now do the math if the caldera is potentially as rich as longs suspect....
I have been long Lion One for years the project is sound, no doubt. The deal will get done one way or another. I just don't believe that a major move in the share price will occur until deals are inked and infrastructure is complete!
Patient, frustrated and hopeful....