so far the discussion on the new mgt team has focused on whether they will use the considerable experience to extract value from existing ground or whether they will spin in a new asset.
2 recent announcements so far have mentioned a third party review of the various assets held by SMD. the new mgt team have gone on field trips and field activities have been suspended pending outcome of the EGM.
has anyone considered whether any scenarios where there is a spin out of some of the SMD assets into a new company?
possibly with in specie distribution of shares to existing SMD holders, and with a CR for new holders to get into the new company? There is for example that phosphate play that appears to get no attention, but might be of interest to another group.
a spin out play could allow the old mgt team to drive forward an exploration asset (or assets) whilst allowing the new management to focus on development activities.
S/h would extract value in the form of additional shares, and allow a new source of capital to enter to help explore the currently parked ground. the new team to get into development without distraction and it allows the exploration ground to also be progressed at the same time.
thoughts?
SMD Price at posting:
11.2¢ Sentiment: Buy Disclosure: Held
