GREY:KXLAF - Post Discussion
Post by
rtszd on Oct 31, 2012 10:02pm
PDG's Present Share Value based upon 'Terms of Arr
Based on the NR:
Argonaut Gold Inc. and Prodigy Gold Inc. have entered into an agreement pursuant to which Argonaut Gold has agreed to acquire all of the issued and outstanding common shares of Prodigy by way of a plan of arrangement. The combined entity will benefit from the strong operating experience and cash flow of Argonaut Gold and its ability to successfully advance Prodigy's Magino gold project, which has an indicated resource of more than six million ounces (223 million tonnes at 0.87 gram per tonne gold using a cut-off grade of 0.35 gram per tonne). Pursuant to the terms of the arrangement announced today, Prodigy shareholders will receive 0.1042 of an Argonaut Gold share and 0.001 cent in cash per Prodigy share, representing $1.08 per share based on Argonaut Gold's 20-day volume-weighted average price and a premium of 54 per cent based on both companies' 20-day VWAPs as at Oct. 12, 2012, the last trading day prior to this announcement. The transaction values Prodigy's equity at approximately $341-million on a fully diluted in-the-money basis and implies an enterprise value of approximately $277-million.
My take on the price per share as of today's $10.63 AR close equates to:
0.1042x$10.63=$1.1076 per PDG share value on Wednesday's close. Obviously, this could change/fluctuate but the 0.1042 figure, I believe, remains constant. Comments as to accuracy welcome!
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