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Gold/Mining/Energy : Pangea Goldfields T.PGD -- Ignore unavailable to you. Want to Upgrade?

To: AriKirA who wrote (514)	11/19/1999 8:00:00 AM
From: salva	Read Replies (1) \| Respond to of 1178

.....< Barrick did learn the hard way last time. Can't blame them for trying to avoid the same mistake. But... is it really that bad for PGD shareholders? > .......... No! I dont think so. Barrick has taken an 'option' on Tulawaka and also on the whole of PGD indirectly. Dont forget that there are two other 'serious' partners in bed with PGD---Ashanti and Anglo gold. Ashanti is 'sick'-has its own problems and are not much of a threat for a takeover BUT Anglo Gold is another story--Anglo Gold could very easily (financially) make a bid for PGD --when it becomes more apparent what kind of a 'gem' Tulawaka will turn out to be (by more results released and more future deeper drilling etc..) And then there are others... Newmont , Placer Dome and other 'sleepers'. For us investors to get 'top dollar' returns I think we will need to see a 'surprise' bid come from someone other than Barrick- and then the sparks will fly. JMHO I dont mind waiting - its money in the bank for me-cause Tulawaka will be a 'gem' of a find!--Just my speculation based on released drilling trends-- I think in the end Barick will buy out PGd (and MDN) mainly because of the excellent relations being built up between the senior managment of both Barick and PGD I get this 'gut' feeling that Barrick 'knows' what kind of future exicting results will come from further Tulawaka drilling based on their knowledge of Bulyanhulu (sutton) and Golden Ridge drilling and geology and decided to LOCK UP Tulawaka. Therefore because of the above I feel very bullish for the future prices (and takeovers ) of both PGD and MDN. 'Its only a matter of time! JMHO Rgds

To: AriKirA who wrote (514)	11/20/1999 10:26:00 AM
From: timbouctou	Read Replies (2) \| Respond to of 1178

"But... is it really that bad for PGD shareholders? I actually find it quite intriguing" Hi Ari. I am presently in Africa (not Tanzania), so it took me some time to find an internet connection and learn of last week's events. Anyway I look at the "sale" to Barrick, I fail to see the benefit for PGD (and more importantly for us). Barrick will have (at least) 1 million shares, plus the option to buy 1.2 million more. They will most likely buy another 1 million share on the market (if they have not yet done so) giving them 2 million shares. They will then hold less than 10% of the stock, and won't have to declare it officially. With their option for an additional 1.2 million shares, they will be in a position to control more than 10% of the stock, should an other bidder come along. IMO this will make a take over by somebody else more difficult, but not impossible. If I was a major interested in PGD (just rationalising), I would build ASAP a 10%+ position in order to be able to play the game with the same deck that Barrick has. That would be a good investment anyway (who ever ends up buying PGD will have to pay much more). So I don't understand why has PGD has made such a sale and in such a way. 1) Did they really needed money that badly? I thought that they had enough money in the bank to continue and expand drilling. If seems that they have decided to conduct a feasibility study. This necessarily implies that Tulawaka, in their opinion, holds much more than has been published so far. So, as suggested in prior postings, they will indeed launch, soon, a very aggressive drilling program and conduct the required tests to bring the property closer to exploitation ... or sale. 2) If they needed money that badly, why have they not released all the drilling results that they have in their hands? My understanding is that they are pretty good (add coming results from Imwero and from Golden Ridge). That could have cause the price to increase and obtain a better price for the new share issue. What they got from Barrick was almost market price (the $6 for the option in 2 years means nothing). So no premium! And for no premium, PGD has allowed Barrick to be in a position to play hide and seek behind the 10% level and move over at their discretion !!!! 3) Is there an other hidden agenda behind this move that will ultimately benefit the shareholders? I certainly hope so, but would like to understand. Could there be a purchase option or agreement of some kind based on the results of the feasibility study? Until now (I might be wrong or I might have been wrong) I thought that PGD's management was very good, very strategic. This "sale" challenges my belief. It is indeed a great move by Barrick (which further contributes to demonstrate how well this company is managed). I don't see how it is or could be construed as a great move for PGD and us shareholders. I think that, as shareholders we deserve more explanations or information from PGD. This being said it does not change my appreciation of the properties that PGD has, or of a fair value for PGD. I think though, that it makes the bidding more challenging (difficult?) or less attractive, and this in turn could lead to a lower price... unless an other major position itself like Barrick has.