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Some supporting evidence to your graph Sculpin. It can happen quick! This is from a series of posts comparing various takeout prices.

All facts, and very close, but approx numbers!

Takeout Example #1 (Arequipa)

posted on Dec 05, 11 05:50PM Use the IP Check tool [?]

I think these examples are interesting, not only for the going takeout price per OZ in the ground, but also to show the Share Price is only half of the key information, but you must know how many Fully Diluted Shares are Outstanding.

The bottom line, you hear of a takeout for x amount of $. The x is the result of how many OZ multiplied by how much per OZ. Then if you divide all the shares into x, that will give you the Share Price the shareholders will receive. So, it's very easy to see, dilution of shares, is not a great thing!

Anyway, enough of all that, here is the 1st takeout example. All these numbers are approximate, but should be very, very, close:

Company:Arequipa

Year:1996 (Aug)

Buyer:Barrick

Gold Price:$400

Takeout Offer: $1 Billion ($1000 Million)

Gold Reserves:5.0 Million OZ

Price/OZ Paid:$200

Shares O/S:33.3 Million

Share Price:$30

SLI Equiv:$8.00 (this is based on the offer divided by 125 Million O/S shares for SLI)

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