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Desert Sun Warrants - What To Do?Dudley Baker With the recently announced acquisition of Desert Sun Mining common shares and warrants by Yamana Gold many investors are left wondering what to do. Based on the press release dated Feb 22, 2006, we offer the following advice. First of all, any investor holding either the common shares or the warrants should be very happy with their gains (See the charts, below). But investor face several choices going forward. ![]() ![]() To recap the above charts:
Leverage: 1:1.9 warrant over
the common shares (almost a 2 to 1 difference). The Desert Sun Warrants would become exercisable for Yamana Gold shares at an exercise price of C$4.17 and be entitled to purchase .6 shares of Yamana Gold until 20 November 2008. So, let's keep this simple:
All of the above are good choices and all investors should be happy will the gains to date on the common shares and warrants of Desert Sun Mining. March 14, 2006 Dudley Baker is the owner/editor of Precious Metals Warrants, a market data service which provides you with the details on all mining & energy companies with warrants trading on the U.S. and Canadian Exchanges. As new warrants are listed for trading they alert you via an e-mail blast. You are provided with links to the companies' websites, links to quotes and charts, tips for placing orders and much more. Precious Metals Warrants do not make any specific recommendations in their service. They do the work for you and provide you with the knowledge, trading tips and the confidence in placing your orders. For those investors seeking more knowledge on warrants do visit the Learning Center at Precious Metals Warrants, where you will find much more information and examples to enhance your learning experience. You may also sign up for The Warrant Report free weekly email. Disclaimer/Disclosure |