Ryan Gold Corp V.RYG

Ryan a good prospect?

[tomgranite]

Hi, EAG shareholder here just poking my nose in. I hope the deal goes through even without Temex. Just done some calculations and I'm mystified. Oban current SP is 9c, Ryan is 12c and if the deal goes through each Ryan share will get 1.88 of New Oban which is currently worth 16.92. That means Ryan is trading at a discount of around 40% to the value of current Oban share. If the Oban deal falls through then you still have the $21.4 mil in the bank. Oh, and Ned Goodman's son is CEO so it won't be long until another deal will be done. Given the current weakness in the junior miners it is a buyers market and becoming more so as each day passes. Am I missing something or can someone give me an unbiased opinion why I should not bet the farm on RYG?

[Method]

The only real risk on RYG and CRG is that OBM trades under 6.5 cents post deal which would be under its cash per share. It makes sense even to sell EAG to buy the other two because people seem to be putting a lot of value on the warrants and that value is a lot lower given the implied OBM price.  I think ink you are right that the deal closes without TME and we should have a circular by the

[tomgranite]

Thanks for the response Method. If New Oban traded at 6.5c, then not only would it be trading at below it's cash holding, the value of the Windfall Lake site would be nil. I think that the fact that Osisko and Dundee are so involved in this merger means that they will be actively looking for new projects and deals, which when you have $60mil in the bank, a wealth of knowledge and skills and it

[Method]

I was trying to be unbiased but I do own CRG and RYG in pretty good size.

[tomgranite]

Thanks, I agree with your logic and thinking. I did sell some EAG but am holding the rest because of the warrants. With the fall in value of gold and junior miners struggling, I really do feel that being part of an investment with Dundee and Osisko ($64mil in hand) is great timing.

[sherbrooke1]

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[tomgranite]

By going in to Oban you will get a premium on your current SP(at current prices). The management of New Oban will not be idly sitting on a pile of cash, they will be looking to acquire assets cheaply in a buyers market and hopefully adding value to them. You might have 18c in cash liquidation, but your SP is only 12c.