MSB Global Capital Corp. (MSBM)

[righty]

There seems to be a lot of confusion over the value of ore to be sold to the white mesa mill. many valuation extrapolations I have read here seem to indicate that people are under the impression the $135/pound market price for u308 yellow cake is a basis for starting to evaluate the resource values.

This is NOT the case. Until rsds makes enuff cash to build it's own mill the only value that can be placed on the resource is the ore buy rate that white mesa is prepared to pay for the ore. Or a reasonable evaluation of the resources by the ore ton weighed against the value of ore/tons the mill is prepared to pay.
There are many mitigating factors to the value of ore which can be best illustrated after having read the following document.

http://www.denisonmines.com/files/objects/Ore%20Purchase%20Contract.pdf

Once having read that we now need to establish the ore/ton rate , we can see from the following document, that the rsds ore on the payday claims is valued at approximately $230/ton.

See the following document.

http://www.denisonmines.com/files/objects/Ore%20Purchase%20Schedule%20July%202007%20rev2.pdf

Seems to be a stark difference eh? u308 is $135/pound, ore is $230/ton

Wow, huge reduction when selling ore compared to the finished product, as you can clearly see below:

1 ton [short, US] = 2 000 pounds ore x .25% avg payday content approx gives 500 pounds yellowcake and if vanadium content is 2% then 40 lbs vanadium for the mill to sell, lot of cash for the mill, of course they have costs to process the ore, and this is why they only wish to pay 240ish/ton for the ore.

Notwithstanding the mill's processing costs they are certainly getting a nice deal here, they pay $240/ton and receive approx, 500 pounds yellowcake and 40 lbs vanadium to sell at market rates.

Considering the vast difference in value received by the miner versus the mill, you can quickly see the only easy route is for the mining company is to amass a large amount of rich claim reserves, perform the geo work necessary to compile a national instrument 43-101 report or reasonable facsimile geo report,and pursue some limited ore extraction.

Sell it to the mill, until such time as it is feasible to sell the claims and/or company to another bigger outfit or the mill itself.

Hence stock hippies buyout rumor, true or not, that is the ideal scenario.

One can only hope there has been some historical relationship with the mesa mill in the past to establish a workable scenario to entice mesa mill in advance of the 43-101, ie: if they already basically know the content based on historical records.

However this could only ever reasonably produce an inferior offer compared to the real value of the product in the ground.

it could result in a handsome offer once the total claims are finished up the geo work, but people need to realize the billions of dollars in value of pounds of u308, are not going to be realized in such a scenario.

That being said, If rsds pulls out all the stops towards permitting, we could see some ore revenues in advance of 43101 completion, and or a buyout offer at any point, given the above circumstances.

peace.