Ryan Gold Corp V.RYG

My rough calculations on the OBAN deal

[stockman6767]

I have done some very rough calculations based on a few assumptions and from data available on Stockhouse on the cos involved.

I assumed that the market value for the prior 15 days (as they suggest) (prior to June 9) was a reasonable place to start even thogh a better valuation might be based on the gold in the ground and cash in the bank. I began with a comparison of the FOUR cos (EAG, CRG, RYG and TME) leaving the OSISKO contribution for later. Dundee it seems makes no contribution but owns shares in 3 of the 4 cos.

All numbers in the following brackets are respectively for (EAG,CRG,RYG and TME).
So step 1: the number of shares outstanding - (25.3M, 21.1M, 117.1M, and 186.6M).
Step 2: My rough idea of 15 day avg for the shares: ($0.32, 0.34, 0.13 and 0.07).
Step 3: The resulting company market cap ($8.1M, 7.2M, 15.2M, and 13.1M).
Step 4: Total market cap (sum of step 3) of merged 4 cos: $43.9M.
Step 5: Percentage each co of the total merged value (18.45%, 16.40%, 34.62%, and 29.84%).

Now compare to the proposed distribution in the deal for New Oban:
Step 6: The proposed distribution of shares of N. Oban (10 + 5Wts, 7.67, 1.88, and 0.78).
Step 7: # shares of N. Oban recieved per co (253.3M + Wts, 161.8M, 220.1M, and 145.5M).
Step 8: Total N. Oban shares (not incl. Osisko) = 780.7M shares.
Step 9: Percentage each co of N. Oban shares (32.45%, 20.72%, 28.19%, and 18.69%).

Now compare step 5 to step 9.
Step 10: The compaison: (18.45 / 32.45, 16.40 / 20.72, 34.62 / 28.19 and 29,84 / 18.69).

Conclusion: EAG is a big winner and TME the big loser. CRG and RYG smaller diff but not right.

All the above ignores Osisko and its $20M contribution and the warrants given EAG.

All the above IMHO a rough idea of the unfair deal proposed with TME (and RYG) the very big loser.
This assume as they proposed that the 15 day average before the deal is significant.
I think that the deal should be valued by AU in ground and cash in bank.
This would be less susceptible to manipulation and closer to truth and not steal future value from any of the participants by those who knew what to buy in advance.

Vote NO!

Glta
Stockman676

[hedgefudge]

RYG VWAP was roughly 12 cents. RYG shareholders are receiving ~20 cents per share in stock(which is better than cash) as a result of the share conversion. It's currently trading at a discount to to cash(which is 18 cents) and the takeover price. This deal will likely go through because the shares of these companies have been accumulated by insiders and people close to the insiders. Their is

[tomgranite]

I think most shareholders of the companies involved support this deal apart from Temex. I'm glad I recently bought EAG at 30c. Temex are getting little initial boost, but the million dollar question is what are the alternatives for them. Cash is king in junior explorers which is why Ryan is getting a small premium.