Argonaut Gold Inc T.AR

SpinCo

[ARNGFInvestor]

"Shares issued in SpinCo as part of the Exchange Ratio do not reflect a planned 10:1 share consolidation upon SpinCo going public."

Key point is when SpinCo goes public.  My understanding is that share holders will get 1 for 1 shares prior to going public which will be after June 2024.  So if you own 100,000 shares of of arngf you will be 100,000 shares of SpinCo.  Once SpicCo goes public (I'm assuming will take at least a few months) there will be a share consolidation.  At this point you will now own 10,000 shares of SpinCo.

Based on the press release the value of a SpinCo prior to consolidation is C$0.06.  So after the consolidation the value per share should be C$0.60. 

For C$0.60 we get:  Florida Canyon mine in the United States, as well as the El Castillo Complex, the La Colorada operation, and the Cerro del Gallo project, located in Mexico. 

We also get the proceeds from the Heliostar deal?  Specifically the three year option agreement for 100% of the San Antonio project.

Just an interesting side note Heliostar current price is C$0.30 with 250M fully diluted shares.   With gold tonight at $2400US  I hoping that we will see SpinCo at more than C$0.60.  




 

[Robert88]

Thanks for explaining the SpinCo business so well !!!   Gold futures are on a tear ,,$ 2411 right now...,, I hope this all works out for all us AR investors !!!   Cheers!!!

[Sclarda2]

Yes we get the low resource low grade Mexican "Assets" and the .3 gram per tonne Gravel pit of Florida Canyon which can only make money at these gold prices which can drop just as fast as they rose. And Alamos gets the 250 thousand ounce brand new mill with huge high grade resources. Of course AR shareholders will hold aprox. 5% of Alamos after the deal closes. Alamos is expected to