I have been playing with an options calculator program and have noted the following (this is all just FYI):

Based on the current deal, it would take a $60 K stock price to realize price of $25 per ARU share. Since the ATH of K is $27, this is highly unlikely unless gold rocketed from here (in which case the value of FDN should go up even further).

I would think that the BEST case scenario for the next 6 months (assumming current deal goes through) would be a stock price of $40 for K. The best case would have to include a favorable mining law, a favorable market for PM shares, a retail realization of the value of FDN to K and even a new reserve calculation with more accurate economics attached. A $40 K price would equate to a ARU share value of $16.

I actually don't mind the $32 warrants as part of the deal, they could be very valuable in a short time period. However, the .1429 trade-off (7 ARU shares for every warrant) really reduces the upside of the warrant. The warrant itself could be worth a lot but we will always be dividing by 7.

If another offer is received and K still wants to play (and if I were them) I would look at upping the stock offer to .40 and the warrant to .50. Warrants have a lesser perception of dilution then to issued shares. Under this scenario, a $40 K price yields a $27 ARU price.