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Gold/Mining/Energy : Precious metal company Warrants -- Ignore unavailable to you. Want to Upgrade?

To: Julian Augustus who wrote (263)	7/24/2005 9:55:41 PM
From: dara	Read Replies (2) \| Respond to of 681

Thanks for your response. I would appreciate hearing your opinion on the treatment of the SDM warrants in the takeover by Lonmin if you have the time. Below is an extract from one of their circulars. Instead of creating a new warrant for Lonmin it looks to me that they are trying to phase out the Southernera warrants with no compensation to the warrant-holder. Hence the bid is $0.02 Cdn. :( There are warrants that I'd like to buy (CBJ.wt and GGG.wt) but if companies can make them worthless during a takeover, I'll stick with the shares. They're risky enough for me. Thanks for your time. SouthernEra Warrants If the Offeror (Lonmin) takes up and pays for Shares under the Offer, the Offeror currently intends to implement a Subsequent Acquisition Transaction that will have the effect under the Warrant Indenture of causing the SouthernEra Warrants, in relation to the right to acquire Shares of the Corporation, to be exercisable for a class of redeemable and retractable preferred shares that shall have a redemption value equal to $2.66 per share, and may take such other action as may be available to cause the SouthernEra Warrants and any other Convertible Securities to be cancelled. In other words, upon completion of the anticipated Subsequent Acquisition Transaction a holder of a SouthernEra Warrant upon payment of the exercise price of $10 shall have the right to receive one common share of SouthernEra (for which SouthernEra will receive $2) and one redeemable retractable preferred share of the Corporation which shall be redeemed immediately thereafter for $2.66 (for which the Corporation will receive $8).