Carlisle Goldfields Limited T.CGJ

agree that both offers arent great!

[michaelvim]

would be much easier as someone said before that aurico make an all stock offer in the $.15-$.20 range and keep their cash. would cost them practically nothing!

[99999gold]

great deal for aurico for sure but I don't see a revise offer or full takeover of CGJ at .15c. Why pay 42m (or .15c) now while you can pay 30m (roughly 9.5c)  thereabouts spread over 3 years? that's how sophisticated aurico is and CGJ mgmt are not.  time value of money..... 

[michaelvim]

cause stock cost nothing and they could get 100% of the deal without earn inn milestones and work the project with no timeline.

[casher]

I agree, we should see someone come in with a stock deal or cash and stock. Some investors will want to participate in future upside so they may continue to hold stock in the company that buys CGJ out, this is very common. Tomorrow is the day, I hope some of you voiced your opinions to the TSX. If the AUQ financing has to go to vote, expect to see some more exciting offers come in well before

[99999gold]

Aurico can down the road decide to issue stock to buy up all of CGJ when their stock is a lot higher than CGJ - the ratio will be schewed to their favour as they're a producer, have cash flow etc and if gold rallies further their stock could be at 6 while CGJ be at 8c and aurico will be in a better position with minimum dilution with an all stock deal and premium. 

[michaelvim]

auq has 250 million shares O/S. If they want the asset issue 7-8 million shares $33 million- $38 million and its a done deal. Its really not a big deal! 

[99999gold]

LOL - 38m is not a big deal, so like QE is not a big deal? clearly you fail or don't understand the value of money overtime... 8m shares today at 38 million the upper end of your number is not the same value 3 years from now, just because it works in your favour today that doesn't mean aurico would  - like I said aurico is sophisticated because they actually know how to manage and

[michaelvim]

 i do agree with your response for the most part. That said, if i was running AUQ and i've run public co's before (OTCBB) i would use my paper and keep the cash. $300 million in debt, unprofitable, Aurico should use their best currency at their disposal right now which is their stock and be done with it.

[hrattle]

I doubt the directors view 9.6 cents now as being a fair offer - most shareholders expect more and I think the existing AuRico deal is worth more. The AuRico deal works because it gives CGJ the cash to pay their bills (and salaries), allows them to participate in future development of Lynn Lake and allows continued exploration. AuRico shareholders also seem to like this deal so I can't see

[pdcon1]

looking at the gold reserves of cgj the price should be a lot higher considering the location as well a share swap should be in the cards or a total takeover.