Very good post from the yahoofinance board:
"Well said
This $36 million asset sale to Yamana eliminated the short case. 1st loss is now the cheapest for those who previously bet against mgt and this future metals producing company.
$7.5M upfront allows mgt to:
1) Get current and stay current on all company operational obligations for at least the next 3 years. Not counting the highly likely Yamana $9.8M cash infusion coming April 2013....which means
No more need for TARM to sell more stock to opertionally survive. Highly likely shrs out stays where it is for the next 3 years or more, which means
no more way for the shorts to cover over the next 3 years via a future financing that is now no longer needed
2) company uses this large $7.5M Yamana cash infusion to pay off all debts & 100% own all mine properties, including iron ore. TARM goes debt free and stays debt free for the next 3 years, so impossible for company to go bankrupt
1) and 2) are great for those that own stock in TARM and believed in mgt
With $7.5M now in company coffers = 3+ years worth of operational cash + $9.8M more Yamana cash coming April 2013, provides TARM to transition from mine developer/explorer to mine cash producer, starting now.
When TARM is debt free and stays debt free, future cash flow and earnings flows to stock holders.
If TARM buys more future assets for cash, then company's stock price becomes more valuable.
If TARM uses cash to define the company-owned resources via publishing 43101 geology studies, then the company's stock price becomes more valuable.
If TARM sells another asset for cash, stock price becomes more valuable.
If TARM develops mining assets like iron ore, into a producing asset like cash and earnings, stock price becomes more valuable
If TARM takes excess cash and starts buying back stock, the stock you and I own becomes more valuable.
If TARM takes some excess cash and starts paying a dividend, those that own the stock get a cash return without having to sell any. "
