Pertinent market/industry news/articles, page-1776

Just further,

All I've heard is that its likely to be a 1:4 or 1:5 distribution - i.e. 1 share in the new entity for every 4 or 5 you have in Ardea.

My guesswork goes like this:

• based on the assets, its likely to new entity will have market cap in the $10m-$20m range, remembering this was originally the ground that ARL was going to be spun out of Heron for, and was deemed strong enough to IPO (with the nickel cobalt). So it won't be listed at chicken feed valuation
• I'd expect they would want a decent drilling budget to do the assets justice over 18mths, lets say $5m at least, upto $10m max would be raised
• Priced at 20c, with 50m-100m shares on issue, gives you the market cap in the $10m-$20m range
• Say the distribution results in 20-25m shares in the new entity being granted to ARL shareholders.
• That leaves anywhere from 25m-80m of new shares to be issued, so at 20c raises say $5m - $16m

All in all looking at the above, my best guess would be new entity with 10m market cap, $5m raised at 20c, 50m shares on issue, 1:4 distribution from ARL so effectively half of the shares in the new entity given to ARL shareholders.

And then maybe some loyalty options etc like they did with ARL to raise additional funds in say 12mths, so if drill results are good enough, we buy loyalty options to help raise another $5m+ to keep the good times rolling.

Does that look and feel about right?