Sorry, I just don't get how this is supposed to benefit SLI shareholders.

The money is going to SLI (for the earn in) - both the cash and the shares. True enough. This will get us some cash and get the property developed faster and with less dilution than if SLI spent the money for developing it.

But the proceeds of the property belong to SLI and not the shareholders as such. I agree that to get other properties optioned off to develop them quickly is a benefit. But the real benefit would be to spin out the Tesoro to existing shareholders into a separate company so that when that property is sold off (and I presume that that is what we have all been waiting for for ages) we all benefit. And at that point, we have sold Tesoro, but still have all the other properties in SLI that can be explored.

If Tesoro is sold off by SLI, there is no gurantee that the procceds will be distributed to shareholders - and if it's distributed, it would be by way of a dividend which is not as tax friendly as a capital gain.

The above is just my opinion, and I hope the above rambling makes some sense to anyone reading it. Either way, its not our call haw this all plays out.

Ismore