The company announced it will be doing a 1 for 1 option...

The company announced it will be doing a 1 for 1 option entitlement with a 20c strike price prior to January 9 2013 ( 3 months after the IPO ), so maybe around xmas or early new year .

The current share price is 62 , so arguably the options are worth .42c , however this almost never happens as option entitlements in the money pull a share price back towards its options price .

With the potential of an additional ( 30m opps at 20c )the $6 million cash from the opps coming in places BOA in a very good position not to need a cap raising to get to a measurable resource .

The question is just where will the stock trade post options

My guess is the stock will pull back from 62-65 price it is now to around 45-50c , and the options will trade 25c-30c with no time premium on them .

This works out at a arb value of 70-80c value against a current price of 62 , giving an arb potential of 20-30% .

Personally i wont be selling shares or options , but be a buyer if the stock drops , I just am not sure whether I should buy more now , or wait till post the option issue on the basis it might actually fall further then my estimate .

If good news comes out and the stock runs to 80-90 than the opps are obvioulsy worth even more

I suspect though the news wont come to after they start their drill program in Jan /Feb .

Even after the opps are out there is they have results anything like SIR , I suspect the stock will fly , if they find nothing and have to go back to focusing on the gold they have , it the other BOA projects it might even pull back to 30c and 10c on the opps .

Opinions appreciated on the impact of the opps and whether it might be better to buy or wait .





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