The Energy Report
Notable Quotes
"With the LOI signed, we urge investors to bolster positions in FCU." (12/22/15) Fission Uranium Corp. - David Sadowski, Raymond James More >
"FCU is taking the right steps regardless of whether PLS is ultimately acquired or developed into a mine." (12/22/15) Fission Uranium Corp. - Heiko Ihle, Rodman & Renshaw More >
"I am quite excited about POE in 2016." (12/16/15) Pan Orient Energy Corp. - Chen Lin, What Is Chen Buying? What Is Chen Selling? More >
"BKX's Oklahoma asset has significant value." (12/16/15) BNK Petroleum Inc. - Michael Charlton, iA Securities More >
"EFR is one of the few companies in a position to write long-term sales contracts and deliver into them at several times its current production rate." (12/17/15) Energy Fuels Inc. - The Gold Report Interview with Eric Coffin More >
RPG: Sierra Would Add Strategic Properties
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SEAN PEASGOOD, Wellington West Capital Markets
(06/01/2010)
"SRA has early stage projects in Nevada that are eligible for grants. Sierra's Paymaster properties are located next to RPG's Clayton Valley project. Developing properties simultaneously may provide synergies. All stock deal values SRA at C$28.4 million or C$0.213/share. RPG would issue ~11.125M shares to complete the transaction. This would maintain the large cash balance required for project development. The price is attractive; we see potential value of C$0.27/share. SRA has C$20.9M of properties and capex invested, C$4.5M in cash and $10M in DOE loan funding for exploration totaling C$35.4M. Reiterating Buy rating and C$4.50 price target. RPG's shares are attractive at 0.6x FDFF risked NAV and 0.2x FDFF unrisked NAV. We will update our model after the transaction has closed. Transaction Price Is Attractive for Ram Ram and Sierra Geothermal entered an LOI in relation to the potential acquisition. The all-stock deal values Sierra at ~C$28.4 million or C$0.213 per share, an 18.5% premium to Friday's close. Ram plans on entering into a definitive agreement at the end of June, following completion of the due diligence and other transaction negotiations." |
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Under SEC rules, analysts are required to disclose their interest in securities that they cover. We strongly encourage you to contact them to understand any potential conflicts of interest they may have.
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