The following information comes from AMG recent announcements.1....

The following information comes from AMG recent announcements.

1. Currently have 155,810,075 shares on issue(post placement from 3 cents in January)

2. Currently have $1373400 in cash. $564000 prior to placemnt at 3 cents 3 cent placement raised 809,400.

Company can place another 23,020000 shares at 3 cents to raise $690,600. This would give them 178,830,075 shares on issue prior to the Tuvatu gold deal.

For the Tuvatu gold deal to take place AMG has a bit of work to do. The will issue EMP 42 million shares and gove them 8.5 million in cash plus royalties from future gold production.

Leaving the gold royalties aside AMG needs to raise this cash. Options to them is to do this via a placement(likely), rights issue(possible), financed debt(unlikely).

Say AMG is able to raise $8.5 million shares thru a placement or rights issue and they can secure the funding at a share price of 4.5 cents. AMG will issue 170,000,000 to gather the cash to pay for the Tuvatu deal.

In total AMG should have on issue 348,830,075 shares
and $2,063,400 in cash to develop a gold mine.

This would give them $0.0059 cent per share in cash, disregarding the value of their gold assets.

The above cash per share is a little discouraging but you must work out a value for their assets. At this point it is a little difficult to determine that.

It will be interesting to see how AMG raises the cash for the acquisition. Seeing though they are doing the broker rounds i would say that funding by private placement and private debt has already been ruled out and that a rights issue will take place.

Usually rights issues are always below current market price and once the rights issue is done the stock drifts back to that rights price.

Not saying this is a bad deal or a good deal just putting some info together that was taken from the recent announcements. Someone might want to check my figures.

Cheers Chooch...