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

To: Eva who wrote (32333)	11/16/2004 3:15:06 AM
From: Taikun	Respond to of 39344

That's what I thought. I'm reposting this from Stockhouse: Jump to SLW Forum SUBJECT: Calls cost US$2.05 / oz. Posted By: ukboard Post Time: 11/15/04 12:51 « Previous Message Next Message » Elements of the transaction: SLW Buys: + 2million ounces per annum + Over 19 years minimum, that's 38 million oz. + Price is US$3.90 /oz. or less SLW Pays: + US$50 Million cash upfront + 30 Million SLW shares (eqv. US$20 Million) + 30 Million SLW wts. (at C$0.80, 5 years), on a "back of envelope" basis, I value this at US$8 Million = A total value of US$78 Million SO, SLW gets 38 Million oz. of Call options for US$78mn, That's $2.05 /oz., for a strip of $3.90 /oz. Calls, Which are about $3.60 /oz. in the money vs. $7.50 spot WHAT A WONDERFUL cheap way to get long silver