That's the current low ball offer - they'll likely have to cough up more. In addition there is the cost of developing the mine.

You're right, even with the above, its not a huge dilution but something that will overhang the SP for a bit. Unless Gold quickly rises to 1200 -1500 I don't expect their SP to do well until they are pulling gold out of FDN. You certainly will not be using the joke warrants to pickup bargain K shares at $32 anytime soon.