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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (8154)	2/26/2003 10:55:17 PM
From: tyc:>	Read Replies (1) \| Respond to of 39344

Yes. The exercise price is fixed at US$19. I had better give you what the prospectus says. Okay ? "Each whole warrant will entitle the holder to purchase one Common Share at a price of US$19.00, subject to adjustment in specified events. Warrants will be exercisable at any time prior to 5.00 p.m. (Toronto time) on the date which is five years from the date of closing of this offering. Holders of the warrant may elect to pay the exercise price in Canadian dollar equivalent of the US dollar exercise price. See "Details of the offering - warrants".

To: LLCF who wrote (8154)	2/26/2003 11:44:47 PM
From: tyc:>	Read Replies (2) \| Respond to of 39344

Sorry thread, but there may be a fallacy to our logic. We supposed that the only change was a fall in the value of the US$. But gold is measured in US$. If the price of gold measured in US$ does not change or even falls, then the price of gold in higher value Canadian dollars will fall, and the value of the company in Canadian dollars may fall also. It could easily be that the US$ market capitalisation would remain the same, and that Canadian stock prices might fall. Nevertheless. If the value of the Canadian dollar increases, the Canadian value of the exercise price will fall and the Canadian warrant value will increase accordingly. I'm glad I said "Caveat Emptor" !