re: Ann: Red Sky completes major transaction ...
This is a real pickle.
The company is getting 150m x 0.007 for the placement = $1,050,000 70% is reserved to fund their share of the exploration, so $315,000 into the coffers.
They are also getting $700k for selling the initial 10% of the permits and 2x $1m for the renewals.
So all up roughly $3m coming in, about 0.2c per share.
Selling the remaining stake to ERM would give another 0.63c per share (best case).
All in all, making very generous risk/return assumptions, this probably makes the current 0.4c price look about right.
The real question is now, what is the quality of the ATP840 & ATP946 assets?
ATP840 is discussed here, but there is not a lot of more recent information: http://media.wotnews.com.au/asxann/01064611.pdf
ATP946 is discussed here. Try not to chuckle at RG comments at the bottom: http://www.energy-pedia.com/news/australia/red-sky-energy-farms-into-atp-946
Any other opinions?
Hopefully we'll see something more substantial soon, those consulting fees need to be justified...
ROG Price at posting:
0.5¢ Sentiment: None Disclosure: Held
