I would say that the discrepancy we are seeing between the current QMN share price of 11c and the valuation of 19c is the mathematical chance that MML will be unable to execute the deal, whether by the money not coming from China exists or is real or it somehow get stopped by Australian FIRB of ASX intervention?
Or - put another way - the market doesn't believe that the cash AU$45M component MML deal will be executed/real - or does think that the deal will be executed but has put a massive negative valuation on holding the AU$$ 8M worth of MML convertible notes. Or a case of "I will believe it when I see it."
Interesting that QMN management are buying on market, would appear on the surface to be a no brainer to buy on market at the same price? Just gotta remember all the uncertainties on potential show stoppers for this transaction and return of cash to shareholders, its not like you are buying a future guaranteed $10 note for $8.75 now...
Remember - this is the proposed sale of the White Range project itself - QMN still have lots of other tenements in north west QLD.
QMN Price at posting:
11.5¢ Sentiment: Hold Disclosure: Held
