IDM Mining Ltd RVRCF

Deal Valuation Makes No Sense - Vote NO

[dmacd]

Ascot has a plant with a book value of $1M and no measured resource. Higher indicated and inferred might be comparable to IDM. Hence the resources might be similar in valuation ... say $30M each. Ascot mine has assets worth more than book value. CC suggests this might be worth $800M less the Capex to resurrect... ballpark $200M based on my guess plus cost to open a new mine area ... ballpark $200M unless the goal is a 1 or a year life from a smaller asset and hope gold prices pay for expansion. It seems like they bought the Ascot assets do far for about $50M. If the goal was to start small then why buy IDM now? Perhaps they need a 10 year resource base to access funding. I am fine with the merger but the valuation is AWFUL. I will support the deal at $.15/sh. Otherwise I will vote NO. Shame on IDM management for negotiating a terrible deal for all but themselves. Shareholders got screwed here ... IDM may have been stolen for cheap and was gifted to Ascot by common shareholders. There is rationale for the Ascot valuation to be $200M. It makes no sense based on the purchase price for the assets and drilling has not earned it either. SWEETEN THE DEAL OR NO WAY!! This reeks of stock manipulation to me.