I certainly hope we get a fair independent report for MKO...

I certainly hope we get a fair independent report for MKO shareholders and that they value the plant at replacement and not book value which is virtually nothing. This is a couple of extracts from EAR’S Independent Valuers’ report:

Page 26:
We consider the net asset value to be the most appropriate methodology, given that the core value of the Company lies in the exploration assets that it holds. We have instructed an independent specialist to value Metaliko’s mineral assets in accordance with the VALMIN code, which we have included in our net asset value. The net asset value also best represents the value that is attributable to shareholders as a whole.

Von Rico notes: based on the above paragraph MKO value is considered fair and reasonable even ignoring the value of plant and infrastructure.

Page 32:
13.1.5. Bronzewing Gold Treatment Plant
If the Takeover Bid is accepted, Echo Resources will gain access to the nameplate capacity 2.3 million tonne per annum Bronzewing Gold Treatment Plant and associated infrastructure. A lease agreement was entered into whereby Bullseye will recommission and operate the Bronzewing Gold Treatment Plant at its cost, and pay Metaliko an agreed dollar per tonne lease fee on ore processed through the Bronzewing Gold Treatment Plant. The lease agreement is subject to a number of conditions precedent, which primarily relate to plant refurbishment and statutory approval relating to the lease and operation of the Bronzewing Gold Treatment Plant by a third party.
If the conditions precedent are satisfied, the lease agreement will represent a significant milestone as the Bronzewing Gold Treatment Plant will become operational at a reduced cost to Metaliko and provide additional revenue from ore processed by Bullseye . In addition, the ability for Metaliko to process its own or third party ore provides for additional revenue through full utilisation of the Bronzewing Gold Treatment Plant capacity once recommissioned.

Von Rico notes: Plant and infrastructure are merely a $100m bonus to EAR shareholders. EAR valuation ascribes little or no value to the plant, yet EAR shareholders reap the benefits of the bullseye leasing deal. This plant and associated infrastructure has a replacement value of $100m. Seems they want to rush this deal through before revealing the full details of the leasing deal. Shame we can’t see the bullseye deal first.