Here is (one of) the issues I have with this deal...a before-tax IRR of 52% sounds very nice indeed...the PEA reports a life-of mine average of $17.1 million per annum EBITDA , but taxes in Nova Scotia are pretty high (compared to say Ontario) , with existing 2%Royalty and provincial and federal taxes one is looking at ~31% tax. Remaining 69% equals ~$11.8 million earnings per year. If the warrants (as noted above by @jr.gold.bull.yvr) get exercised then the new FNC will have ~300million shares outstanding..post-tax earnings of ~$11.8million {(not until year 4 (per page 348 of PEA https://a6318e9e-e924-4c26-a6ae-460285e6836d.filesusr.com/ugd/5a746f_613d60a33821423d95e6c9c5b61b1cf6.pdf) } divided by 300million shares equals EPS of ~4 cents. Now, according to the Lassonde Curve we will likely be re-rated as a producer and our SP should rise accordingly. But what are the forward  P/E ratios for Lead/Zinc miners? I'm guessing perhaps 5? (please correct me on this number if someone here can provide an alternate value for this) . Thus one might expect an SP of 5x 4cents or an SP of $0.20? That's if the re-start goes smoothly (which hardly ever happens ) and Lead and Zn prices remain steady.

Now what if we simply take our chances with $CIA. They are making money hand over fist, and could likely pay for the entire necessary CAPEX for their Phase II expansion from existing capital and cash-flow from just one year of production. Could you imagine if you had a friend with a resto business (Covid-19 restrictions aside) and he told you that he was adding an outdoor patio which would double his current patron capacity and earnings and that the bank was going to give him a 3 year mortgage to do so, but he could likely pay it off in 1 year if he wanted to) ? Even if the price of iron ore drops from its current lofty heights (which it surely will) to something more reasonable to $100 US/tonne, CIA is still making ~$50/tonne profit. Once their capacity reached 16million tonnes (expected to happen by the end of 2022 I imagine) that's cash flow of nearly $800million per year. With ~400million shares outstanding that's ~$2/share . That puts the SP of CIA at ~$10/share at a conservative P/E of 5. The SP of FNC would double given that we are being valued essentially at the value of our CIA shares. Which route/operator would you place your bets on, the stellar management of CIA who have a proven record of meeting/exceeding all of their objectives, or the crew of SZN?