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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: TheBusDriver who wrote (9831)	4/27/2006 1:54:51 PM
From: LLCF	Read Replies (1) \| Respond to of 78405

<Also the rights are way out of the money right now not in the money?> I was going off this: Each Warrant will entitle the holder to purchase one (1) Chesapeake common share at $8.00 for a term of 5 years. Yep, out of the money. <Each Right will, on or after such date (the “Exchange Date”) as the average London PM fix closing trading price of gold for the trading days on such market during any 90 day period is equal to or greater than US$850 per ounce, be exercisable for one (1) Chesapeake common share at $1.00 for a term of five years (which will be extended by one year if the trading price for gold has been at or above US$850 per ounce on any day during the last six months of the five year term).> YES... I see now, my mistake. I was assuming that the part about POG was only to lower the strike to nil if POG went to $850... BUT it looks as though those are worthless UNLESS POG goes to $850. Those are really an exotic $850 call option on POG payable in CKG stock. Interesting, but not really dilutive at present prices. Thanks for clarifying. That will be one INTERSTING exchange traded vehicle if it gets listed. DAK