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

To: LoneClone who wrote (26763)	12/1/2006 2:04:16 PM
From: koan	Read Replies (2) \| Respond to of 78426

LC, that seems impossible? Onepath as usual alerted me to them, but using the math below doesn't seem to be right to me. 2.813 times $1.70 = 4.78 + $3.50 = $8,28, so bying the wts would be cheaper than the stock? what am I missing here? The vet: "Iamgold warrants are still one of the best bargains around IMO.. Even though IMG.WT picked up 5 cents today (moving from $1.65 to $1.70) they got to be even better value as gold increased and IMG improved by 49 cents to close at $10.98. 49 cents on the stock adds over 20 cents to the warrant value. Apparently because the math is not nice round figures buyers have failed to appreciate the value of these deep in the money warrants. You need 2.381 warrants to buy one share for a strike price of $3.75 on or before August 2008. IMG closed today at $10.98. So simple maths shows you that (10.98-3.75)/2.381 = $3.03. That is what the warrant is worth in cash now, ignoring almost 2 years of time value. So the market is selling the warrants for $1.70 that are worth $3.03 as stock at exactly the same time. That's a 78% immediate return that anyone could get right now simply by buying the warrants, exercising them and selling the stock.. Now IMG isn't my favorite gold stock, but it's not bad and everyone must be doing extremely well if they can pass up deals like that! All prices above are Canadian dollars. disclaimer - I own IMG.WT (and I wish I had more)

To: LoneClone who wrote (26763)	12/1/2006 2:09:10 PM
From: koan	Read Replies (1) \| Respond to of 78426

LC here are the terms, I think the vet did the math wrong: (C-IMG) - Warrants Called to Trade Iamgold to list 20 million warrants on Nov. 9 2006-11-07 20:10 ET - Warrants Called to Trade Shares issued 175,878,684 IMG Close 2006-11-07 C$ 10.07 TSX bulletin 2006-1464 In anticipation of the plan of arrangement involving Cambior Inc. and Iamgold Corp. which is scheduled to become effective on Wednesday, Nov. 8, 2006, the 20 million common share purchase warrants in respect of 8.4 million common shares of Iamgold will be listed and posted for trading at the open on Thursday, Nov. 9, 2006, under the trading information set out below. Warrant symbol: IMG.WT Warrant Cusip No.: 450913 11 6 Designated market-maker: RBC Capital Markets Pursuant to the proposed arrangement, each Cambior Series C common stock purchase warrant will be exchanged for one Iamgold warrant entitling its holder to subscribe to 0.42 common share of Iamgold at an exercise price of $3.75 until 5 p.m. (Toronto time) on Aug. 12, 2008. Should the arrangement not become effective prior to 2 p.m. (Toronto time) on Wednesday, Nov. 8, 2006, the Toronto Stock Exchange will issue a trader note at that time announcing that the Iamgold warrants will be halted from trading at the open on Thursday, Nov. 9, 2006, and will remain halted until further notice. The trader note will also announce that trading will continue until further notice in the common shares of Cambior and the Cambior warrants under the current stock symbols and Cusip numbers. See elsewhere in today's TSX bulletins regarding the delisting of the Cambior common shares and Cambior warrants. Certificates representing Cambior warrants will represent good delivery for trades made in the Iamgold warrants. The Iamgold warrants are governed by the terms of a warrant indenture dated Nov. 6, 2006, between Iamgold and Computershare Trust Company of Canada, as trustee. The warrant indenture provides for appropriate adjustments to the rights of the holders of Iamgold warrants in the event of stock dividends, subdivisions, consolidations and other forms of capital reorganization. No fractional Iamgold common share will be issued or otherwise provided for with regard to the exercise of Iamgold warrants and any resulting fractional Iamgold common share shall be rounded down or up, as appropriate, to the closest whole number, it being understood for greater certainty that 0.5 Iamgold common share shall be rounded down to the closest whole number.