Rye Patch Gold RPMGD

RE: RE: RE: Sun Valley Gold

[pipefit2]

"I suspect it will take a while before all warrants get exercised and sucked up by the market."

I got the impression that Sun Valley intends to hold the newly acquired shares as an investment, just as they are holding their other shares.  It is posible that other entities exchanging warrants for shares are selling the newly acquired shares.  But I bet all the big players that exercise warrants will hold the newly acquired shares.

When most people refer the share structure of a company, such as rpm.v, they refer to the 'fully diluted' share position.  In this case, all warrants that haven't expired are already accounted for.  Therefore, the 6.66 million shares that Sun Valley just purchased in no way changes the fully diluted share total.  They simply moved 6.66 million from the warrant category to the share category.  And they put $1.3 million into rpm's checking account to make the switch (.20/share).

So I don't think Sun Valley's announcement was a factor in the price drop.  The stock was overbought and now it is correcting.  I'm glad they are drilling like crazy without any new pp's.  And it looks like there won't be any more pp's this year, unless there is an acquisition.  But I'm pretty sure the major shareholders have told these guys to concentrate on the existing properties first, and worry about acquisitions later.  That's my hope, anyway.