chalice and enamco reach agreement, page-7

"US$32million for 30% of the project values CHN's 60% at US$64m... or AUD$60.4m... or 24.2cents/CHN share. The Eritreans got a bargain out of it, trumped even the Patterson clients."

Isn't it normal for large capital raisings (which is effectively what the 30% sale is) to be done at significant discount to market? After all, if an investor is going to risk 32 million dollars, they'd probably want it to be a "sure thing". If the investor is the govt (and the provider of vital permits etc), its logical to expect the investment price to be even more of a bargain.

So the 24c/share (plus 12c/share for the 32m cash now in the bank) means that 36c/share is an absolute bargain basement "sure thing" kind of a price - the price that powerful insiders get set at.

With estimated cash costs of less than $350/oz, the gold price could literally halve from here and 100,000oz/year would give a gross cash flow of $40,000,000... Current market cap is around 80 mil, enterprise value around 50mil.

(Of course the Eritrean public could always have a riot or two, overthrow the govt and kick all foreigners out. I wonder how much sov risk insurance would cost?)