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Gold/Mining/Energy : ARP - V Argentina Gold -- Ignore unavailable to you. Want to Upgrade?

To: goldenbloke who wrote (3039)	3/3/1999 10:52:00 PM
From: Tony from Niagara	Read Replies (3) \| Respond to of 3282

While senior management and IR at ARP have stated that several prospective purchasers have signed confidentiality agreements and/or been on site, and while it is possible that some third party may make a bid for ARP, the win -win situation referred to by David Harquail, as I understand the quotes attributed to him, is that ABX will return with an acceptable, modestly higher bid that will preserve the dignity of all involved. As to what would be an acceptable, modestly higher bid, your guess is as good as mine. I recall reading a NR in late 1998 or early 1999, that the ARP board would entertain a bid of CDN $6.25 to $6.75 per share. Since that time the per share value of ARP has been negatively affected by the private placement of 2 million shares at CDN $5.25 per share as the cash receipts from the private placement, in addition to being less than that hypothetical acceptable price (although made at the market), were offset at least to some degree by the expenses associated with the defence of the takeover bid. Conversely, there has been an increase in resource estimates with a further increase to be announced shortly. It may be that CDN $6.75 is now not acceptable to the board, its advisors and a majority of the shareholders. Clearly, at the blue sky level of 20 million oz., and assuming that the ore may be extracted and refined at relatively low cost as has been suggested, ABX would be getting an incredible bargain at that price. Elsewhere on this thread you will find some projections of the share value at varying quantities of resource, although those projections should be read in light of the recent posts questioning the applicability of $50/oz. for in-ground resource estimates as opposed to proven resources. Moreover, little or no regard has been paid to the claims which abut Veladero and are wholly owned by ARP. I do not understand the blue sky estimates to include those other claims, but someone should obtain confirmation from ARP as to what is included in the current and prospective estimates. Reportedly, ARP is looking for a co-venturer to fund exploration of those claims. I hope this may be of assistance. Regards, Tony