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Bill,your guess looks to be exactly correct.The rumour sweeping the brokerage houses in Toronto is that ABX will offer .8 of a share for 75% of a Bre-X share.If ABX is trading at 40 then .8 is equal to $32 a share. You will still retain your Bre-X shares but the value will drop by 75%,say $20 to $5,but when you put the together you get $37. Not a bad deal if the rumour is true,and who do we thank for this the management of Bre-x or the governemnt of Indonesia?
I knew ABX would be part of it . Because Munk wants this so badly . I just think they should realease the new assay results so we could know where we stand. Actually .8 isn't bad as you said since we get the benefit of any new gold plus we get to participate in any gold found on the AREQUIPA property which looks very promising. We also benefit since the price of gold should rise in the future $400-425 after euro countries get their books in order. I think Barrick probably had something to do with the price of gold falling so low in the short run.(a couple of $$$$ for 50-100 million ounces ain't so bad) . IT's like their telling us we have all the cards. I will keep my abx shares because this guys are to smooth and since i might/will get screwed on this deal with a little vaseline .I will participate in future forced takeovers/(screwings) and my ABX shares will go up up up up!
Hi Jay, I do not think the share price will go any higher than the $20.00 that it is today. The Indonesian Government announed that Bre-X must strike a deal with Barrick before Cec 4, 96 or the Government will bake whatever steps it deems necessary to see the Busnag gold deposit put into production. It seems that Bre-X is almost being blackmailed into striking an agreement with Barrick. If you were Barrick would you offer top dollar. It seems to me Barrick is in bed with government. This is not a good sign for the other juniors in Indonesia.
Beach, I'd have to say I agree with you but the price of gold will determine whether it goes higher or lower than your prediction. If your a stock holder like me lets hope the former will happen tommorrow.
Yesterday, market players reeled from the news that there may be no gold whatsoever at Busang. ÿBre-X stock (BXM/TSE) was halted all day yesterday. Its closing value on Tuesday was $15.50.ÿ"If it opened today it would be trading at about $1," said Doug Leishman, a mining analyst at Yorkton Securities Inc. in Vancouver.
That's what I gather also.. The precious medal funds had their grey price set at $1.00 yesterday indirectly that would be the price you would be paying or selling it at if you redeamed them. My prediction would be that price, till news from the Stra drill results leak out and they will leak! Boy