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The Canadian Mining Newsletter
Jan 28 1999
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Argentina Gold Resources ARP/VSE
The Argentina poison pill, shareholder's rights plan, has been
disallowed by a rather compliant BC securities commission, ever
vigilant about minority shareholders rights to be lemmings of
the month. Interestingly, the Canada Newswired announcement
says without quoting, that "shareholder's should, if they wish,
tender their shares to the Barrick bid."
"Should, if they wish.." that is a sucker's admonition for the
books. I wonder what compliant snivel serpent authored that
one. Nothing like deceiving the public. Its as if the stock
god said it was the sucker's duty to give up their shares.
The BCSC conveniently ignored the fact that Barrick itself has
a poison pill in place of their own and they had one offer
for Argentina expire already. How long will this game go on
before people see that Barrick is desperate to buy a plum in a
blase market? One would never sell when a drill is turning and
the company is finding. The company geologists believe that this
one can go to 20,000,000 ounces. That would be by conservative
evaluation 20 bucks CDN per share if we take gold at $40.00 US
an ounce for valuation purposes.
Should one tender their shares? Only if you believe gold will
be lining pop cans and nuggets given away in cracker jack
boxes. Until then, have some faith. There are relatively few
hostile takeovers in gold. Be awake when there are. Are they
fair? Never. And neither was the Arequipa bid, but that is
another story.
EC<:-}
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