Ann: Notice of General Meeting and Prospectus , page-7

I dont think its confusing as much as disconcerting.

The way PKF have worked out fair value, its alot less than actual current share value.

"By way of indication, if the Board adopts the preferred value of a US nickel share determined in the PFK Report of 4.4 cents, then the option exercise price reduction will be 2 cents. The Board is minded to adopt this value if there are no exceptional circumstances that arise before the issue of the 44 million US Nickel shares to the Company."

The market right now says USN is 18c. Even the ARD board says

" the Board and US Nickel at arm?s length negotiated the BGP Agreement on the basis that the value of the US Nickel shares was 15 cents and that the value of the Company?s Shares was 20 cents having regard to recent ASX trading."

and

"It is noted that on page 12 and in clause 1.5.2 of the PKF Report under the Shareholder individual circumstances heading, it is stated that some individual shareholders may place a different emphasis on various aspects of the proposed transaction from that adopted in the report and that accordingly individual shareholders may reach different conclusions as to whether or not the proposed transaction is fair and reasonable in their individual circumstances ?the Board endorses these comments"

There is a real difference of opinion between the two boards (and the market) and PKF.

Who do you believe?

After reading the above i'm alot less worried about the whole deal.

I'm concerned for ARDO though. As it would seem to me that there is going to be only a 2c reduction in the strike price even though there looks to be a 9c value distribution of USN to ARD (atm) and both boards are using 15c for the value of USN.