SFR has been at the bargaining table with TLM for some months...

SFR has been at the bargaining table with TLM for some months now about 2 things I'd say.

1. Reaching agreement on the terms and conditions of their JV agreement.

2. In all probability, buying out TLMs 30% interest.

They seem to have reached an agreement on a 3-month budget and TLM, with about $22m in cash as at end of last Q, has the fin'l capacity to fulfil its obligations for many, many months in re exploration and mine prep work. However, that said, the total cost of the mine development is going to be about $100m according to Argonaut Sec's assessment. Even so, I am sure that TLM could easily handle raising the necessary money for its share.

TLM's capacity to participate in the JV til an income stream happens in say early 2018 puts it in a pretty good bargaining position in re point 2.

However, imo SFR would find greater efficiencies if it held 100%. How much is the 30% worth? I created a thread on TLM about that several weeks ago. The ingredients are the values of both the JORC'd Monty deposit and the vhms potential of the rest of the jv ground at both Springfield and Halloween. Bell Potter and Euroz value that share at much higher than 38c per share. The MC of TLM atm is about $70m. That MC includes a value for TLM's Sinclair nickel project but that's a small component. It also includes >$20m in the bank. The major value component is Doolgunna, or at least it should.

Let's say TLM would accept $130m for the 30% interest and let's say SFR would pay that sort of money to get full ownership. How would it pay for it? Cash? Scrip? Cash and scrip? Could it afford it in fact?

TLM's SP has stayed at about the current level for many months. My observation is that it has been controlled by powerful forces.

Conclusion perhaps is that the SPs of both companies have an element of a buy-out in them.