Gold Production, Development and Exploration

Unlocking One of the World’s Most Prolific Gold Mining Regions

Free
Message: Inca Kola News

Inca Kola News

posted on Dec 24, 2008 10:44AM

Rusoro (RML.v) at $0.43 and Gold Reserve (GRZ) at $0.52. So RML has rebounded nicely in the last couple of days, certainly more to do with the rolling out of a slick promo campaign than the company fundamentals. There's more dilution on the way than the punchbowl at a Mormon Prom night. Taken strictly on the numbers, the 3-for-1 deal RML is offering for GRZ means it's valuing each GRZ share at $1.04 now (0.43X3/1.21 forex rate), precisely double its PPS. This alone would point to just how much the market expects RML to dilute in order to raise capital after the GRZ buyout happens. This assuming it ever happens, of course. A real tangled web, all in all. The very best advice is go look somewhere else to put your money if you're not bought in already. Just avoid them both.


Dec 30, 2008 10:58AM
1
Jan 05, 2009 07:02AM
Share
New Message
Please login to post a reply