Silver Dragon Resources Inc. (fka SDRG)

[silver-bullet]

Just to keep some things straight, the original Shengda offer was for $25M of stock over 4-5 years with some possible deductions to payments if the mine wasn't profitable. NPV at best of $20M but probably less. SDRG countered with a $40M all cash offer. So we are somewhere between $20-40M and I'm guessing closer to $30M (NPV of SDRG's share of Dadi alone in 2011 was ~$25M but with higher silver prices then). And last I recall total SDRG liabilities are > $9M. So in the end you have a mining company with no properties and $20M on the balance sheets with 300M outstanding shares.

The question then becomes what SDRG does. If they liquidate we could see $0.06 PPS. But if SDRG decides to continue to pursue exploration, given the track record, we will never see $0.06.

Any constructive thoughts on this?