Mining Company research board

[1manband]

They are an exploration stage company. You are correct.

"Exploration" and "Development Stage" are terms with specific legal definitions. Under SEC Industry Guide 7, a "Development Stage" mineral company MUST have PROVEN RESERVES AND be engaged in the preparation of such reserves for extraction. "Proven Reserves" also has a legal definition, which means the legal and economic feasibility of the mineralization has been established. That means one thing and one thing only - a bankable feasibility study prepared by an independent third party (or parties) has been completed.

RRHI has no reserves as defined by the legal definition of reserves. Therefore, they are still at the exploration stage. No doubt about it. Companies without proven reserves can not legally be called "Development Stage".

Now, here is where it gets sticky. Technically, Raptor's non-mineral subsidiary IS at the development stage, as the term has a different meaning for non-resource companies. Therefore, prior to entering the mineral exploration sector, they would have been a development stage company. HOWEVER, Raptor very clearly states in their filings they are not currently funding their dental subsidiary and are now concentrating on their mineral exploration company. Therefore, they can no longer call themselves "Development Stage" as mineral exploration is now their primary business. If they continue to call themselves "Development Stage", the SEC will eventually catch up to them and force them to change it. Assuming their auditor doesn't figure it out first and make them change it.