HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Message: Need some help over here
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Your calculation of share value ("At the time of today's offer, NOT's S/P was $2.25 and based on a 3.5 to 1, this equates to $0.6428 per share.") is correct so NOT values the warrant at ($0.86-0.642= $0.218/sh x 7) $1.52/warrant.

The valuation is based on the Black-Scholes model of valuing warrants (without dividends). The longer the duration to the strike date (5 years) and the more volatility (a lot recently) in the stock price the more they are worth. Here is a handy calculators to use if you want to run various scenarios.

http://www.hoadley.net/options/optiongraphs.aspx?warrant=Y

... Been There

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