what value yellow rock resources, page-2

One would have to assume 20c as an nominal number for the new IPO...

But given the current market focus on vanadium (and uranium in particular) one might be forgiven for expecting a fair bit of interest in the IPO and a subsequent higher price...ENR and several others come to mind.

Anyway...lets look at the possible value impact on GPN shares going forward.

Remember...shareholders get one YRR share and half a 20c YRR option for each 24 GPN shares held. Also, GPN get some 8m YRR shares and 4m 20c YRR options for their troubles, maintaining an exposure for themselves and of course, shareholders.

Examples...

1. Assume YYG at 15c...
GPN shareholding (8m shares, 4m options) = .17cps
GPN in specie (1 share, half option) = .71cps
Total inherent value = .88cps

2. Assume YYG at 20c...
GPN shareholding (8m shares, 4m options) = .23cps
GPN in specie (1 share, half option) = .96cps
Total inherent value = 1.18cps

3. Assume YYG at 30c...
GPN shareholding (8m shares, 4m options) = .36cps
GPN in specie (1 share, half option) = 1.5cps
Total inherent value = 1.86cps

4. Assume YYG at 40c...
GPN shareholding (8m shares, 4m options) = .52cps
GPN in specie (1 share, half option) = 2.13ps
Total inherent value = 2.65cps

Perhaps interesting from the above figures...if the new IPO should trade around 32c (possible given recent uranium IPO's) the inherent value for each GPN share equates to 2.06c.

This is more than the current share price and makes no consideration for their retained gold assets, near-term drilling or the rising gold price?

If...and I say IF...they manage to bring in some respected players for the uranium/vanadium spin-off, we may well see some serious value applied here...but even if not, given the current interest for the sector, the IPO is unlikely to crash even if Huphrey B. Bear were put in charge?

I await the respective appointments with interest.

Cheers!