There's been this rumour hanging round about M&A and Pediment (PEZ.to) for a while and today the thing came out of the closet. Argonaut (AR.to) was a company formed less than a year ago by smart miners to take over the El Castillo mine from the now defunct Castle Gold and run it right for the first time ever (as this chart shows).....
Here for good measure is the 1 year Pediment Gold (PEZ.to) chart.
Here's the NR linked and here are the two bits you'll need to know.
"TORONTO, ONTARIO--(Marketwire - Oct. 19, 2010) - Argonaut Gold Inc. and Pediment Gold Corp. are pleased to announce that they have entered into a binding agreement (the "Agreement") to complete a business combination (the "Transaction") to create a premier mid-tier gold producing company focused on the Americas.
"......all of the Pediment common shares (the "Pediment Common Shares") issued and outstanding immediately prior to consummation of the business combination shall become exchangeable into the common stock of Argonaut on the basis of 0.625 of a common share of Argonaut for each one (1) Pediment Common Share. Based on the closing price of Argonaut on the Toronto Stock Exchange ("TSX") on October 18, 2010, the exchange ratio implies an offer price of C$2.56 per Pediment common share and values Pediment's equity at approximately C$137.1 million on a fully diluted in-the-money basis."
DYODD, dude.