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@DFP
Another person on retrobike said they had a frame just like it (same damage) and they rode it for years with no problems. In any case its surely a good buy for £25
Imagine it split up:
Tioga-marin headset £5
Forks £10
Frame £10
Bottom Bracket: £5
Chainset: £7
Seatpost: £4
Brakes: £8
Cables: £8
Rear Mech: £3
Even at jumble sale prices it still adds up to a fair bit more than £25