Pangea Goldfields T.PGD Message Board

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Gold/Mining/Energy : Pangea Goldfields T.PGD

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To: Enigma who wrote (1120)	7/3/2000 1:48:39 PM
From: terryswift	Read Replies (3) of 1178

Enigma: Months ago I warned to beware of Barrick. My worst fear has now happened. We have been had by Barrick for much less than this company is worth. I believe you are right in that Barrick had their ducks in order and engineered a takeover that left them the only feasible player. As you said in an earlier post, PGD has been lead like a lamb to the slaughter. Barrick is not just opportunistic, they are predatory; and this is a classic example. If you want further proof, watch MDN. They are in for a rude awakening. When Barrick works up their project completion cost budget for Tuluwaka and presents MDN with a bill for $10-$15 million (MDN's 30%) where do you think the stock price is going, given that MDN is virtually broke? PGD was a very friendly partner for MDN and carried them on some of the project costs by buying MDN stock when MDN needed cash for its 30%. I can assure you, Barrick will not be so kind. If you think Barrick got PGD for a song, wait until you see what they get MDN for. MDN will have no choice, they will have to sell to Barrick at whatever Barrick offers. The deal was a cash deal because Barrick insisted on a cash deal. Barrick feels their stock is undervalued. They don't want any further dilution at these price levels and did not want a stock deal. Had Pangea insisted on stock, Barrick's offer would have been lower. Lower!!!! How's that for arrogance? or confidence that you're the only player in the game. I don't believe there is any chance this deal will be rejected. You can bet that Barrick has the institutions lined up to tender their shares. My understanding is that what has been tendered so far plus institutional shares will get Barrick to roughly 50% so they still need about 17% of retail holders, but if a retail holder doesn't tender their stock and Barrick gets the 66.6%, the retail holder has just committed economic suicide. Barrick's development of PGD's properties will be on a much longer time frame than PGD's. There is no guarantee that Barrick will develop Tuluwaka anytime soon. They are probably more interested in Golden Ridge and Buly South to feed their Sutton mine than they are in drilling Tuluwaka. Our only hope to get fair value for our stock is if another player jumps into the game. I'm hoping Anglogold or RTZ (JV on the Peru property) will take a close look at this deal and realize they can pick up some of the finest gold properties in the world for a song.

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