I think there must be something we are missing here.

Sage just basically agreed to issue 58 million shares and get in return about 3.5 million in cash and whatever properties Puma had been working on. Had they decided to go to market and do a PP at 6 cents, it would take precisely 58.333 million shares to raise $3.5 million .... plus they'd likely have to give (at least) half a warrant with each share.

So to that extent, in the absense of warrants, the deal looks OK on the surface all things being equal. However I would have hoped that a PP would not be needed until after an initial drill program. A PP at even 12 cents with a full warrant would provide the same dillution as this deal ... sofar it doesn't look like a GREAT thing

So what are we missing?

1.) with the Golden extension being the focus, any projects that Puma had been working on will almost definitely be placed on the backburner.

2.) If these properties have value, it would be senseless to closet them. Perhaps they plan to sell/option off those properties ... ie more bucks for Sage

3.) kinross most certainly had a huge say in the deal as a 35% shareholder in PUMA, maybe they saw better value in the sage properties. Perhaps they are taking over the Puma properties ... for a price? ie: more bucks.

4.) perhaps Sage is planning a more agressive drill program now that the Geo surveys etc have been completed ... they need more bucks now not later.

Any or all of these could be true and they might not. In any case, I think this is only the beginning and we will be hearing more as this unfolds. As junior markets improve, the Puma properties, if sold off, could provide a very good source of cash for exploring the GE.

on another note

I don't buy into the theory that now the Kinross is in all other majors will shy away. First, we didn't have any majors involved anyway so having one in is great!! Second, the BG area is/will be bigger than anyone can imagine and when all is said and done, there will be several large players involved. Agnico owned a large chunk of Gold Eagle before it was scooped up by Goldcorp. Even though it was in their backyard, if a major wants a property, they will go after it if the price is right.