new study thread , page-84

re: warrants issue by pjo-calculations 1. Financing the Palmarejo Project.
http://sa.iguana2.com/cache/f3029000770df038ee511be4d03ee3ae/ASX-BSG-405673.pdf

PJO will receive CAN$75 mill up front (1st issue) and another CAN$49.33 (second issue) later on from half warrants, before costs-See (2).

I am satisfied that the Plant and Mine can be satisfactorily financed while BSG can afford to take up their stake as they had $40 mill on 31 Dec.

Production is envisaged to start early 2007.

2. Current share structure of PJO and BSG stake:
PJO: 81.498 mill shares and 5.780 mill warrants and options, a total of 87.278 mill shares and options/warrants (1).

3. First Issue of warrants: 6.315 mill and 1.578 mill, a total of 7.893 mill.
Second issue: one half warrant per exercised share is: 7.893 mill/2=3.9465 mill warrants. Total warrants from these 2 issues: 11.8395 mill (2).

4. PJO: Total shares, warrants/options:
81.498 mill shares + 5.780 warrants/options (1) + 11.8395 mill warrants (2), a fully diluted total of 99.117 mill shares, warrants/options.
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5. BSG stake in PJO.
Pre-Issue, BSG owns about 79.4% of the PJO shares or 64.71 mill shares. It will prescribe for 2.1032 mill warrants from the first issue and 1.0516 from the second, a total of 3.1548 mill.

It will therefore have a total of 67.865 mill shares and warrants in PJO or 67.865/99.117%= 68.5% in PJO, all fully diluted.

In addition, it has its own 100% projects in Mexico and some cash.

Subject to audit,

Gerry