Sulliden Gold Corporation Ltd T.SUE.WT

RE: Why wouldn''''t SUE jump at this offer?

[CrashLanding]

I can tell you quite simply why. The offer sucks big time. By Peggy's own admission the Shahuindo property is worth between $300 and $400 million. If you use the low end of Peggy's own estimate and discount by 50% for time value of money and then another 30% for extraction taxes (nothing to do with mining), the company is worth $105 million, and that doesn't include the value of its other two projects and its cash (which was $4 million as at July 31, 2007). That works out to an all cash valuation of about $1.45 per share. Why would any SUE shareholder accept Peggy's offer? Based on CMM's closing price, the offer amounts to about $27 million for all of the Sue shares, a lousy 38 cents per share based on CMM's closing share price today. I for one am not going to tender my shares. CMM's offer isn't anywhere close to making it worth my while.