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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers
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From: LoneClone11/5/2009 10:54:42 AM
   of 78416
 
OK, time to do some figuring.

The following may be a complete waste of time -- I am assuming that TRY shares held on the TSX are eligible to participate in the following rights issue. I have an e-mail in to the company to ask.

Canadians are entitled to participate in the TRY rights issue on the basis of one share at $A2 per 6 shares owned. The problem is that these shares will be listed on the ASX even if your current shares are on the TSX.

Let's say I currently have 1500 shares, which entitles me to 250 of the $A2 shares. $A2 = $C1.95 or so. let's just call it even. Let's also say the shares are worth $C2.50 at that time, assuming the decline to be caused by the issue is offset by the rising peice of gold.

So I could acquire the 250 shares for $500 and sell them for $625, but the transaction fee at TDW Canada would be $215, meaning I would have to get close to $3 apiece just to break even.

Looking at another way, to cover the $215 transaction fee at 50 cents a share, I would have to acquire 430 ASX shares, to be eligible for which I would have to buy another 1250 shares or so by next Monday to make the record date of Nov. 12.

Bottom line -- it's probably not going to work for me at this point in time. I will look to see if I have something else I am willing to sell to fund this purchase. There is no mention of any hold period for the ASX shares, but the certificates won't be issued until December, so who knows how long they would take to make it to Canada and into my account? And who knows what will have happened to the $C-$A exchange rate by then?

LC
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