Liberty Gold Corp (LGDTF)

[Hockmir]

While the single day pop of 37%+ as a result of the takeover offer by Newmont looks good on paper, here is another view, which was posted on the Yahoo board:

so most people think this is great, a 37% increase in one day. however if you look into it with a little perspective then I beleive it's nothing more than a hostile take over.
first we will surrender the 52 million shares of palidin that frontier just recieved for the uranium holdings. then there's the cash held by frontier, 164 million dollars (mrq).
now add to this the sandman and long canyon properties, plus frontier's share of the northumberland property. these holdings have the most potential, and have had the most exploration dollars invested in them of all the properties held by frontier.


now look at what that 37% premium actually is.....
# 1. 14.00 per share cash minus what you have paid for your position
# 2. one share of pilot gold (a company created by this transaction ) for every four shares you surrender of frontier.
# 3. shares created for this transaction represent 80.1% of the total holding, nem holds remaing 19.9%.
the new exploration company pilot gold will be funded with 10 million dollars cash...NOT MUCH AT ALL FOR AN EXPLORATION COMPANY, (look what it costs to drill)
# 4. your new company will retain the properties in exibit A:

Anchor
Baxter Spring
Brik
Buckskin North
Cold Springs
Easter
Gold Springs 2
New Boston
Regent
Stateline
Viper
Turkey
Halilaga
TV Tower
Peru
Rae Wallace Rights

and here's the best news of all:
Newmont said it will receive a break-up fee of about $85.8 million (U.S.) if the deal fall through due to specified circumstances.
NOW IS THERE ANY QUESTION THAT THIS IS NOT AN HOSTILE TAKE OVER ?
that's MY take on it,
stockkiller