Glyna - I think you underestimate the claim that CHM have on this asset. $8m - $24m best case scenario or a 1- 3% payoff is way below the mark. Look at it in terms of the original cost of the tenement. Why would we be going through this case if MMX were only 1-3% short of cash when they bought the tenemant? Why were MMX so desperate to take cash and stock that contributed ONLY 1-3% of the cost of the tenemant? e.g. if the tenemant cost $1m do you really think that MMX would expose themselves to this level of risk for $10k - $30k?? Even if it cost more, finding 1-3% of the purchase price when you have commitments for 97-99% would not be difficult. All parties agree that the cash and stock in question came from Chameleon. The only difference in opinion is how this cash and stock should be treat and how to compensate CHM shareholders. In my opinion, these events would never have happened for 1-3%. CHM would not have put themselves through this process for that sort of payoff either. The percentage interest that reflects CHM's investment is far higher than 1-3%. In my opinion it is closer to 30%. Time well tell but lets just get this judgement out of the way and see what details are disclosed to give us a feel for value.
CHM Price at posting:
10.8¢ Sentiment: ST Buy Disclosure: Held
