RML ends asset sale negotiations

Our US gold and critical minerals Investment Resolution Minerals (ASX: RML | OTCQB: RLMLF) is now not going ahead with the non-binding indicative offer it received on 6th August.

A few weeks ago, RML received a $225M non-binding indicative offer for its Horse Heaven project in Idaho, USA from NASDAQ listed Snow Lake resources.

RML said that the main reason for the deal being called off was because of the structure of the transaction - reading between the lines, the main sticking point looks to have been the final shares/cash split of the offer.

It goes without saying a $225M deal for RML’s asset would have been amazing only a few months after Investing in the company.

Now, with the deal off RML’s share price can go back to a level where no expectations are priced in from a proposed takeover.

The positive from that is that now, RML can find a share price floor where investors are happy to own the company for the potential of its exploration project.

Clear air for a re-rate on good drill results now?

We think that lower valuation going into drilling could be good for RML.

RML’s valuation now sits at ~$72M at 5.8c.

All of the recent selling could have come post drill results and no matter how good they were, the stock wouldn't have had any breathing room to re-rate higher.

AND a lot would have had to go right at a pre-drill market cap above $120M.

Now RML’s capped at $62M (before accounting for the in the money options) and we think the risk/reward going into drilling is a lot better - especially with its neighbour trading at a ~$2.9BN market cap.

Ultimately though it will be the drill results that determine where the share price lands, and we will know inside the next few weeks.

What’s next for RML?

Drilling (happening now) 🔄

We want to see RML improve on the old drillholes that delivered hits as good as ~71.6m at 1.37g/t gold and 36.6m at 1.51g/t gold.

None of the old drilling here was ever tested for antimony or tungsten, so there is all of that potential upside come drilling time.

Read our recent Article on the drilling commencement: RML now drilling - next door to ~$2.9BN capped USA antimony leader

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