>>Which is to obtain Veladero at a fair price. In short...3.5 millions ounces is worth not more than US$140M.<<
The numbers published at the ARP web site were 4.5 m oz au and 119m oz ag. This is old data as things are changing weekly with the continuation of drilling. The resource is growing based upon a current drilling program so your estimate of 3.5m oz is skewed and indicated you to be a ABX shareholder instead of an ARP shareholder.
In fact I wonder if you are not being paid by ABX to help sell the ABX bid. I am not accusing you of that, but your obvious presentation of the ABX bid as being fair when ARP management and Scotia MeCloud and Loewen, Ondaatje, McCutcheon Limited are all saying the the ABX offer of $5 is inadequate, opportunistic and coercive seems too conspicious. Note this from form 61 at Sedar and #reply-7598756
• In the opinion of LOM, the offers significantly undervalue Argentina Gold shares and was inadequate
• The market clearly recognizes that the Barrick offers were inadequate
• Barrick has rushed its initial offer in an attempt to acquire 100% of the Veladero Project before further exploration results are announced
• The Barrick offers were inadequate and failed to give recognition to the underlying fundamental value of Argentina Gold and its very prospective exploration properties
• Barrick has confirmed that the value of Argentina Gold is substantially greater than its offers
• Barrick's offers are its latest coercive attempt to obtain control of the Veladero Project without paying fair value
Sounds to me like you are working for ABX.
From ARP NR Jan 29
>>The Company remains committed to exploring alternatives to the
Barrick offer and to maximizing shareholder value. Discussions
are moving forward with senior international mining companies.
Several site visits are scheduled over the next few weeks and one
company is currently on site. Interest level has been very high.
There is a growing recognition of the upside potential of the
Veladero project and also a recognition that the land controlled
by Argentina Gold encompasses an entire mining district. There
already exists several promising targets throughout the region
that have yet to be drilled.<<
Again from form 61 at Sedar and #reply-7598756
This whole document is worth reading over a few times but note this.
>>In addition to the Veladero project, Argentina Gold holds the very promising Del Carmen project, Rio Frio, Pancho Arias (Santa Rosa), Vicuna Pampa and several more. All totalled, Argentina Gold has a gold exploration portfolio comprising over 560,000 hectares which covers 80% of the El Indio gold belt in Argentina. Water rights have been secured, ample flat land exists for any future mining operations, high-grade potential “starter-pit” areas have been defined and a mining treaty between Argentina and Chile is in the final stages of approval - !!!!all this placing Argentina Gold's properties in a very strategic position in a region growing exponentially in importance for gold exploration.!!!! <<
I marked the pertanent section with !!!! to indicate the very large upside potential and why Barrick wants ARP. All of this by no means and under no circumstances should be sold to ABX for a $5.00 song. If all ABX is willing to pay is $5.00 and the rest has little value then ARP should spin off the rest of the El Indio gold belt and keep exploring for more of the Amable-like targets which they may contain. ABX wants to steal ARP with all it's potential. This is the spade and I am calling it.
Your comment
>>And how do you explain the absence of another bid ?<<
Again you make the inference that because we have not yet recieved another bid that there will not be one. Not necessarilly a correct assumption. There are still people going to the Argentina site and will be for a few weeks yet acording to both the NR from ARP and their website. Have a look here and read the scrolling comments from Ricardo Martinez in the middle of the page.
argentinagold.com
A steady stream of companies visiting the site. These companies are not coming just for the coffee. As you know Claude company executives don't just wake up in the morning and say where can I invest $200m to $300m today. They do their research and take THEIR time. They don't have to dance to the ABX fiddle because now ARP has $10.5m more to keep them at bay and give more time for others to consider the real value of ARP. The only glitch would be if over 50.1% of ARP shareholders tendered their shares. The share value has been above $5.00 for most of the time during the ABX bid so I would be very surprise to see that very many are tendering below market price. ABx will need to increase the price and have the ARP management on side recomending acceptance and tendering their shares to close the deal. By the way ARP management are talking and acting so far that is not happening soon.
Be patient Claude. Stop trying to sell the ABX bid. They know it is a steal and the results from the drilling program continue to prove it. In time ABX will increase the bid.
Take Care!
Ray
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