ARP - V Argentina Gold Message Board

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Gold/Mining/Energy : ARP - V Argentina Gold

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To: Steelguy who wrote (2382)	1/30/1999 12:06:00 PM
From: Mr. Oil	Read Replies (2) of 3282

If we go back a ways someone on this thread said they received an email with the $200.00 in as the share price at which ABX had offered. I know folks are dreaming and attributing this error to Barrick but it is much more likely that some one cut and pasted the NR and changed the $5.00 to $200.00 to get something going. I would call that a little hype rumor. Barrick are not stupid and we shouldn't draw inferences that they are thinking ARP is really worth $200/share. Lets be ambitious and optimistic but lets not go mad. I don't think anyone should buy ARP with this as their target. On another matter but not altogether unrelated it has occurred to me that the Lundins have pulled off quite a feat by raising $10,500,000 at this juncture. They sold 2,000,000 shares belonging to the Lundins to someone at $5.25/share and took down a PP with the proceeds for the exact same amount. Here is what this accomplishes. 1. They have increased the percentage shares in friendly hands thereby having greater control on the number of shares. This will mean the 50.1% is now harder to achieve because the 2,000,000 share dilution adds to the total number of shares outstanding and effectively increases the shares that must be tendered to Barrick in order for them to achieve the 50.1% they need. 2. They have raised enough capital to stay fighting and healthy for sufficiently long enough period to double or possibly triple the known reserves if they are there. (I think they and Barrick too know that they ARE there!!!) This would bode well for anyone investing at this level. Minimum value is $5.00 even if Barrick goes completely cold on the deal(which I completely doubt). Someone else would happily buy this resource at $5.00 if given the chance.(they won't ever get the chance mind you) The resistance from other suitors now is in going above the $5.00 in a bidding war until the known reserves can justify it. (my assumption) 3. They have convinced some very wealthy individuals or fund managers that ARP has the goods. Not proven in a way to meet the high standards of the investment community and bankers, but they have the goods. Folks don't make wild speculations with $10,500,000 in this market with gold at less than $300/ oz. The state of the junior markets tell us that. If they can get that kind of money from this investment community, they have telling and convincing results already on the table...Mark MY Words) 4. They have shown Barrick that if a hostile bid is what you want then be prepared to take some 'hostile knocks'. This one was a blow to the lower extremities of Barrick in their efforts to acquire ARP. I think ABX are trying not to look too foolish right now but truth is their hands are between their legs and they are in Pain! I think I am going to add to my position on Monday if I can sell some of my non producing holdings. Hold on folks this is far from over!!! Take Care SG. Ray

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