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

To: Enigma who wrote (3043)	3/4/1999 6:31:00 PM
From: Tony from Niagara	Read Replies (1) \| Respond to of 3282

Regarding the propriety of the private placement, my view at the time was different. The Lundins sold 2 MM shares at CDN$5.25 less commissions and took up the private placement for that number of shares at that price. I gathered the reason for doing so in that fashion rather than selling the placement directly to the new purchaser was either to expedite placement or to accommodate Scotia McLeod which was (then) recently hired as its advisor. I assume that the Lundins did not purchase their own shares in addition to taking up the private placement but rather sold to some 'reliable' interests. As to doing the transaction at CDN$5.25 when the Lundins rejected ABX's without prejudice offer of CDN$5.50 for a friendly takeover, I would note that during the time surrounding the private placement (the first 5 weeks of 1999) ARP was trading for the most part in a range between CDN$5.00 and CDN$5.50, with daily volumes approaching or exceeding 2 MM shares on 6 days. The private placement replenished the war chest for the battle with ABX. While there may be an element of ego on the part of ARP management which has clouded their dealings with ABX, such that the replenishment has bolstered their ability to continue the fight and retain independence, up to now at least that result would not appear to be in conflict with shareholder interests. It may well have been the best alternative to capitulation. Time will tell. Regards, Tony