enigma

I don't like the BMO factor either. But, the size of this deal is smaller and there are other banker(s) involved as I recall (and it's a 0.75 wts rather than a full one) to minimize that factor this time.

Below is my post on the other side with some other details, for info.

goldhunter

---------------------posted on the other side-------------------------

A deal at 75% premium over the SP on the previous day is not too shabby, given the current market condition and the depressing POG. 7.5M shares @2.00 = $15M which is about the same as amount that would have been coming from the expired wts (assuming 25% or 2.75M wts have been exercised @ 1.70/wt, on or before 21 April 2013).

Currently, PRB has apprx 32M/previous cash + 4.6M/from the exercised wt = $36.6M. Another $15M = $51.6M should be handy for planned activities including acquisition of claims that have the potential around the SE.

There seems to be some concern about the wts @ $2.10/wt, but potential dilution = some more money (0.75 x 7.5M x 2.10 = $11.8M...please check my math) in the coffer.

I would say with over $60M ($63.4M) cash PRB is sitting pretty. There is one worry though: Some bigger fish may decide to take a run at junior PRB which is loaded with all this cash and all the indicated Au oz.

goldhunter

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