the valuation is at a discount of the headline price of Mn for a reason. You don't just dig it up and hey presto it is worth $280 tonne. You need to spend big on infrastructure to refine and ship it to get $280 tonne. Also you need to take into account the risk of getting the permits, finding not only the ore but marketable quality, sizable amounts to justify spending $$ on the infrastructure etc etc.
Look at iron ore for example companies who have found iron ore in sizable quantities get taken over for $1.20 tonne nowhere near the spot rate of US$124 tonne.
Hence a valuation of only $6m - which is way less than the implied value of the current share price! especially post the private placement.
A valuation of $6M means post the private placement the shares are only worth approx 15c to 16c ($6m/39m shares). Which now makes so much sense why they could only get 10c a share for the private placement. Seriously proctect your current profit before the private placement takes it.
WTN Price at posting:
67.0¢ Sentiment: Sell Disclosure: Held
