James, fyi...
Merger, consolidation and capitalization
Pure Gold Minerals Inc PUG
Shares issued 24,870,966 Nov 20 close $1.16
Fri 21 Nov 97 News Release
Mr Donald Sheldon reports
The recent amalgamation with Cayo Resources resulted in approximately
120,000,000 shares outstanding in Pure Gold Resources. Pure Gold Resources
was then consolidated on a 5:1 basis, resulting in 24,870,966 shares issued
and outstanding in the amalgamated and the consolidated company named Pure
Gold Minerals.
Prior to the merger and consolidation, Pure Gold Resources was trading at
$0.30 (equivalent to a $1.50 post consolidation value) with a
capitalization value of $36,000,000 (120,000,000 shares X $0.30). Following
the merger/consolidation, the company is trading at a capitalization of
$29,000,000 ($1.20 X 24,870,966).
CAPITALIZATION COMPARISON
Ashton Mining Pure Gold
of Canada Minerals
Issued and
outstanding 26,242,516 24,870,966
Share price $5.40 $1.20
Market
capital-
ization $141,709,580 $29,845,159
Interest
in property 42.5% 15%
Reflected value
per percent
interest in
property $3,334,343 $1,989,677
Ashton's reflected value per percentage interest is $3,334,343, whereas
Pure Gold Minerals reflected value per percentage interest in the same
property is $1,989,677.
Pure Gold Minerals participates with Ashton Mining of Canada and Alberta
Energy Company in this highly prospective diamond property on the Peace
River Arch, but also is independently exploring southern Alberta and
southwestern Saskatchewan. The market is placing a negative value on this
activity. This interpretation is provided for our shareholders information
and to clarify Pure Gold Minerals interest as part of the joint venture.
The Financial Post published Friday, November 21 erroneously reported that
the stock increased $0.88 when in fact this did not reflect the
consolidation. |
