merge pdy and agu, page-3

The only way PDY can buy AGU's share of the project will be to offer way above current value as AGU's shareholders would want fair compensation for being excluded from the project. That won't happen because it would be cheaper to combine the two entities. Then there is the other minerals to consider. No point AGU selling their major asset to concentrate on a grassroots project. Better to stay involved in the major project whilst getting someone else to explore for anything else of value.

PDY and AGU have many common shareholders. In fact PDY holders were given a priority allocation in AGU prior to AGU listing. Add to that the cross ownership by directors and string pullers behind the scenes, and you will see only a friendly merger will work.

The Chinese won't get a look in here without negotiating a fair price because of the ownership structure. The reason I included the piece on ACS was to show what true value of this project may be worth. Even if ACS gets $50m for their 391mt, that's around 13cents per tonne of inground ore. Currently PDY/AGU have 891mt fe. Times that by even 13cpt = $115m. That alone is twice the m/c of PDY/AGU combined, without what else the future brings. Do you really think AGU is going to accept a cheap buyout of their 30% of the project by either PDY or the Chinese. The same with PDY regarding any offer for their 70%. Holders have been through a lot over the years and aren't about to walk away short changed now.

What price do you think AGU holders would accept for their 30% share of the project?

How many shares would PDY have to issue to raise the cash to pay AGU?

Do you think it would be less than the amount to merge the 2 companies, which in turn opens up a spin-off or j/v opportunity for the other minerals?

AGU also has $2.6m in cash that goes into the combined kitty.