Americas Silver Corp fka USAPF

[DrBill1]

ANALYSIS OF DEAL FROM V.RXE BOARD (STOCKHOUSE)
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US silver had a bunch of cash RX Gold has a bit of metal in inventory and a receivable of 6.6 million.

60 million USGold and Silver (newco) shares will be outstanding of which 18.3 million ( the 30 % ) will be for RXE folks and the other 41 million will be for USA folks. Prior to this plan of arrangement the mkt caps of USA and RXE where 85mm and 57 mm respectively for a combined value of 142 mm. Theoretically and I mean it in the most on the napkin kind of calculation way the NEWCO US GOlD SILVER will have the same market cap of 142 mm because no value has been lost. 70 % of 142 million is about 99 million and 30 % of 142 million is about 43 million. So the 30 % share of NEWCO that is for RXE holders is about 75 % of today closing mkt cap. Its not great for sure . RXE people look like they are going to be running the show and they will have access to a bunch of cash from USA. USA is a high cost producer and is pretty leveraged to the silver price. Silver above 30 or 35 makes USA margin fat. Silver in here does not help it greatly. Maybe RXE guys will run it better.

In summary no POP for RXE or USA folk here. Newco USA GOLD SILVER trade above 2.25 THEORETICALLY SO you are looking at 26 - 30 cents for RXE shareholders. Unless someone out there loves the deal and goes on about synergies etc
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They don't seem to feel very good about the deal either. If neither shareholder group likes it maybe it's fair. I don't know but liabilities abound with RXE. I think they are after the USSIF cash.
Regards,
DrBill