I tired to post this on Yahoo Finance and they kept delete it.
Why would AR shareholder want to trade 25% AGI's production for 5% of AGI shares if gold price is over $1,900? Put buyout premium asides, 0.062 rather than 0.0185 is about the fair share exchange ratio if we consider the Magino and AGI's DCFs.
AR just built brand new large process and excessive tailing management facilities to save Island Golds hundreds of millions capex. When gold price is at $2,300, the offering 5% AGI share value is just 1~2 years of Magino's FCF. It is ridiculous for AGI rob Magino like this. If gold price stay this high, we need 74% of the remaining shareholders to vote NO to stop this deal if the 40% stays approved in July(Considering AGI's 50M private placement will vote yes) .