You are right, it has definitely be glossed over in our discussions about the deal. I pointed it out to a friend of mine rarlier today and said it would make us a huge take over target once cash started flowing.

Until we see the final agreement we won't be able to truly asses the deal properly. I feel that RF has structured the deal to make CRRC happy with the percentages and Kry happy when we get up and running.

I've mentioned multiple here before buy I will through out a couple of examples of mid tier producers.

Alamos gold closed today at $15.20 with a P/E of 25.33 and an EPS of .60

Yamana gold closed at $11.10 with a P/E of 41.60 and an EPS of .26

Agnico-eagle mines closed at $61.14 with a P/E of 165.24 and an EPS of .37

Kinross closed at $17.93 with a P/E of 32.60 and an EPS of .55

The lowest multiple of the group is 25.33. The last figures from Kry look for 252,000 ounces a year from20,000 tons a day. They also say going to 40,000 tons would give them 500,000 ounces a year. for the sake of argument lets say the proposed 30,000 tons a day gives the difference of around 420,000 ounces a year.

Kry share is 140,000 ounces and RM has suggested that going from 20,000 to 30,000 will reduce the costs. I will use $400 which is high and $1200 an ounce so we have a profit of $800 an ounce. The EPS based on 560,000,000 shares is .20. To my mind the worst case would be a share price of $5.00 or if you use Yamana's multiple you are at $8.00 a share. Using Agnico's EPS we have a share price of $33.00 a share.

These example illustrate the possibility of our SP and the reason for a possible take over.