Healyn
I have always respected your views on EGO and I hope you are correct but certain elements of this deal don't make sense to me, such as where do we get the money to repay ERM if the SP goes up 500% from the CR issue price of around 0.005 cents to 2.5 cents as this would seem realistic on positive drilling news. This would then mean we owe ERM the original 15.1 million + 70% x 5 or another 52.85 million making a total of 67.5 million.
ERM would also benefit from the increased value of their 20% share holding netting around another 26 million profit. These are huge numbers and we need much more information on the facts that will deliver these monies and a substantial profit to EGO.
For instance have we got a buyer for the Red Gulley plant at a significant price and maybe some of the Carnarvon Basin tenements could be quite valuable.
Any comments welcome.
ally
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