@Atlanticlithium shareholders are being asked to accept a 10.8% premium to hand over control of one of the lowest cost shovel ready
#lithium development projects in the western hemisphere.
Some simple numbers cross referencing the valuation on ZHC take'under' proposal:
o ZHC paying $71m for
$ELV 22.5% stake in Ewoyaa
o Values 100% of Ewoyaa at $315m
o
#ALL $A11 own 58.5% of the project ($ELV 22.5%, MIIF 6%, Govt free carry 13%)
o =>
#ALL $A11 stake valued at $184m
o
#ALL $A11 net cash of $13.9m at end last Q
o Assume $3.5m of cash burn/q til deal close at Y/E (no idea what they are spending this on!!!!)
o =>Y/E end cash ~$3.4m.
o ZHC offer at $210m, less $3.4m cash, less $184m for stake in Ewoyaa - implies ZHC paying $22.6m for change of control and exploration upside in Ghana and Cote d'Ivoire. All when SC6 is trading >$2000/tn and AISC is close to $700!!!
#ALL $A11
@AtlanticLithium are being taken for a ride