Ann: Shareholders Approve the La Mancha Transaction, page-3

I've just started looking into this company and would be interested in your elaboration about how EVR are being "fleeced".

If I have the facts correct, the deal is thus:

EVR gets a 55% holding of the ITY Gold Mine and cash of $63m USD.
La Mancha gets shares equal to 30% of the enlarged share capital.

So............ in effect, La Mancha is buying 30% of EVR for the cost of $63m USD plus the 80k oz of gold per year estimated to be produced from the acquisition of La Mancha's 55% holding of the Ity Gold Mine.

Some quick and simple calcs indicate this looks a good deal for EVR:

EVR market cap is ~$270m AUD. That is ~$190m USD.

$63m as a percentage of $190m is ~33%.

So............. in effect, La Mancha is paying 33% of the M/C in cash alone to gain only 30% of the shares on issue. That alone is a 10% premium on current SP. Yep, recognise this is not an EV calculation, but it also doesn't factor in the positive net operating cashflow from the 80k oz per year increase in production for EVR either. Conservatively, EVR should get at least $16m USD operating margin on that 80k oz for life of mine at Ity. I don't know the LOM, but surely it is more than a year or so? Can't be bothered doing a proper DCF calculation and these rough figures should suffice for now.

So, on the surface it looks a good deal for EVR. Why are they being "fleeced" Loki?

I've just started looking into non Ozzie gold miners for the first time in about 5 years, so I'm very interested in your thoughts behind the comments made in your post Loki.

Cheers