Sulliden Gold Corporation Ltd T.SUE.WT

How does this translate to share holders?

[joe2010]

Example I have 12500 sue shares Does that I mean I only get approx 3000 shares of Rio and 1250 shares of Spinco? ( 2.19 / .52 = 4.21 ,  12500/ 4.21= 2969 )
and ( 12500 x .10 = 1250 )
To me that is less then what i have now if my calculations are correct.
I do not see a value of $ 1.12 .
Am I missing something or are my calculations wrong.
Thanks

[benandemmiboo]

Stock popped over 30 percent today on the news -- not on other factors. So if you did your math with Sulliden stock valued at 80 cent per share or less, I think you'd at least see some value in the sale... I agree that the deal is not super -- if gold rebounds in July like last summer, then Sulliden would have likely hit $1 on its own in a month or two -- but it definitely allows shareholders

[ccrfmac]

Your math is wrong. You will get 6,562 shares of RIo (12,500 x 0.525) and 1,250 (12,500 X 0.1) of Spinco.  About Spinco: SUE has almost 340 M shares on a diluted basis, so there will be a total of 34 M shares for Spinco (340 M x 0.1). Since the new company will have a C$ 25 M cash, then the price per share would be around C$ 0.73  (25 M / 34 M). This is only taking the amonut in cash

[joe2010]

Thank you ccrfmac for the correction, would that mean that Rio would then have about 330million shares outstanding. They have 177million now and with sulliden over 150 million more.

[joe2010]

Sorry ccrfmac I read the entire news and Rio will have 340 million shares outstanding.

[egss]

Bharti scores a abig win on payout plus 25 million for Quebec mine. Not a great deal unless another  suitorshows up and or they as a combined entity will be taken out.. Will be interesting to see if someone else takes a run at SUE Agnico has been working with them, wonder what they think.