Mediterranean Resources (MNR.TO) has received another payment from its new Turkish partner as a deposit towards its 10% acquisition of Mediterranean’s subsidiary Akdeniz Resources. Mediterranean received another 400,000 Turkish Lira (C$203,000) bringing the total paid amount to 650,000 Turkish Lira.
Mediterranean is in the final stages of listing its Turkish subsidiary on the Istanbul Stock Exchange and is aiming for a $15-20M valuation at its IPO, which is expected shortly. If we use the lower-end of this estimate (keep in mind the Kaya family pays 2.8M Turkish Lira or 1.4M CAD for an initial 11.76% interest), the company’s stake in its subsidiary should be worth approximately C$12M or C$0.085/share if we assume a 75% ownership of Akdeniz Resources.
Through listing its subsidiary in Istanbul at a higher valuation, Mediterranean Resources’ value could jump overnight to C$0.08 if our assumptions are correct. Mediterranean could soon be worth more than C$0.06/share based on the sum of the parts, even after applying a 20% discount for holding companies.
Disclosure: The author holds a long position in Mediterranean Resources. Please see our disclaimer for current positions.
