Thanks @minoil for mentioning HAR on the XEC thread. My...

Thanks @minoil for mentioning HAR on the XEC thread. My understanding is as follows:-

So for the individual shareholder @ $0.003:

If I buy 1,500,000 @ $0.003 ($4,500)

Then get consolidated (150 to 1) to 10,000 @ $0.45 ($4,500)

Take up rights issue (15 for 1) for 150,000 @ $0.02 ($3,000)

Total shareholding becomes 160,000 @ average $0.04688 ($7,500)

So for the company @ $0.003:

Current SOI 484,525,904 (MC 1,453,577.712)

Post Consolidation SOI 3,230,173 (MC 1,453,577.712)

Post Consolidation Rights Issue for 48,452,595 shares (for Consideration $969,051.90)

Post Consolidation Total SOI = 51,682,768 + 3,000,000 Vendor Shares (Total SOI 54,682,768)

So at SP $0.02658 = Current MC of $1,453,577.712 [~EV]

SP = $0.04430 @ MC $2,422,629.612 (Current MC [~EV] + Consideration [Cash Held])

On that basis it appears to be very, very cheap. At 31 December 2017 they should have $164k in cash with the Company and the Vendor trying to complete by 31 January 2018. Not sure how much CPS will be paid for the recapitalisation though (cash, shares, options or combination etc.).

Alternatively @ $0.004:

If I buy 1,500,000 @ $0.004 ($6,000)

Then get consolidated (150 to 1) to 10,000 @ $0.60 ($6,000)

Take up rights issue (15 for 1) for 150,000 @ $0.02 ($3,000)

Total shareholding becomes 160,000 @ average $0.05625 ($9,000)

And the company @ $0.004:

Current SOI 484,525,904 (MC 1,938,103.616)

Post Consolidation SOI 3,230,173 (MC 1,938,103.616)

Post Consolidation Rights Issue for 48,452,595 shares (for Consideration $969,051.90)

Post Consolidation Total SOI = 51,682,768 + 3,000,000 Vendor Shares (Total SOI 54,682,768)

So at SP $0.03544 = Current MC of $1,938,103.616 [~EV]

SP = $0.05316 @ MC $2,907,155.516 (Current MC [~EV] + Consideration [Cash Held])

Still very cheap. So the acquisition sets the likely course of future action for the Company (nickel/cobalt >>> battery metals). I would anticipate another acquisition at some point during 2018. Of course there is also the not too small matter of:

On the date that is 12 months from the first date that proceeds from the sale or other disposition of product from the Selenge Project are received, the Buyer will pay the Company US$3,500,000.

So I note that the Company announced closure of the sale on 04/08/17 and receipt of the US$1m payment. The US$3.5m payment would translate to AUD$4.667m at an exchange rate of AUD 0.75:USD 1.00 and would be anticipated around the beginning of August 2018. You'd think that the market would have to start factoring in that value as next year progresses. A very interesting stock that should do well in 2018.