Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG Message Board

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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG

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To: loantech who wrote (11869)	11/25/2009 9:11:19 PM
From: rubbersoul	Read Replies (1) of 48092

<The US$39 million purchase price is payable in Jaguar common shares based on the weighted average price of Jaguar's common shares on the New York Stock Exchange for the five days preceding the closing date. Pursuant to the terms of the definitive agreement, if the acquisition were to result in Jaguar issuing greater than 5% of its outstanding shares as of closing to Kinross, then Jaguar would have the option to pay in that number of common shares equal to 5% of Jaguar's outstanding shares plus an amount payable in cash to total US$39 million. Closing of the transaction is expected to occur in early December 2009.> I was thinking that in order for Kinross to receive the maximum amount of JAG shares (5%), then they wouldn't want the share price to be too high. The good thing is that JAG won't give up more than 5% of outstanding shares since they can also pay with cash. I think JAG has about 80 million shares out. So 5% would be about 4 million shares. 4 000 000 X $10 = $40 million. Therefore, since JAG is already at $12, if the share price goes higher, Kinross would own less of JAG. That's my bozo logic.

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