As another SIRG member posted before, the current purchase price can be considered a very low price when you consider that there is currently no production going on.
In other words, it's likely that if the mine was in production, it would cost much more than that (because in production the 20% partner wouldn't sell half of their holdings for so little).
When the mine is in production, and we can see the actual revenues/cash flow, we'll get a better idea of what it should be valued at. If it will produce profit for 5 years @ $10M per year, then I'd say it should be valued at around $50M. That's just an example though, I can't say what the revenues will be at this point. The bigger point is that one way to value the company is $1.2M X 10 (then subtract the other 10%) but it is still a LOW estimate because that value will increase considerable when the mine is in production. So $.032 is around the MINIMUM that this should be trading at just considering 'rights to dig at a non-producing mine'. When it's in production (maybe after 1 full quarter of production), much better estimates for how much of that copper in the ground can be booked as assets can be made and my WAG is that at that time the thing will be valued somewhere between $.15-$.30.
