My recent conversation with a source at Elissa Resources Ltd.
A couple of days or so ago, I was doing more research on this company- after making the aborted visit to the THOR REE site in
Nevada a few days earlier- seeing all the mining and other activity existing in the area- I pretty much decided that it was definitely worth my time to try to get in on the ground floor.
It seemed to me that the way the company got the money to do things like the stage#1 drilling recently completed was by floating stock issues to the public, diluting the existing shares in effect, and I figured that would be the way it went with stage #2 drilling. So I surfed over to the company website and sent an email to the investor relations department, which had a delivery failure. So I decided to call Canada and the phone rang into a highly placed source who I told that I would keep anonymous; I also mentioned that I was a blogger on the net and that I was interested in this project, and in particular, how could I get into the second drilling offering.
The conversation ended up being around 10 minutes or so in length, and these are the main points made by the company representative as I understand and remember them.
The company knows they have a valuable property, and is in no hurry to team up with an equity partner to get a quicker drilling start date and that there was no guarantee of a 2013 drilling date- said drilling might occur after that timeframe.
We discussed the president's quoted remarks about the project is a perfect acquisition target for Molycorp, and I commented that a major European concern or even a Chinese firm might also be interested as well, but that the U.S.Military might have the final say regarding that last.
Also discussed was that the second round funding, and this was done in generalities only.
I mentioned that I might blog about the president's remarks referenced earlier and I floated a possible title which this person thought was pretty good, which I will keep to myself for the moment. It was also pointed out to me that they saw my posts on these two forums about going to visit the THOR REE mining claims site.
We discussed other matters but my recollections are weak now as I had oral surgery today and shortly thereafter ended up having to have my car towed to a mechanic shop.
I was given permission to quote and there was no suggestions made to soft pedal anything mentioned. It was a pleasant conversation with an extremely knowledgeable person on the Canadian end of the phone line. We agreed to stay in touch in the future.
I came away from the phone call with a renewed sense of purpose, to get into this stock asap. I would own it now except for this never ending streak of bad luck that I am having at the moment.
I did tell a friend about it and he's already jumped in, buying Elissa and Molycorp, and I intend to follow his lead.
I am not a reporter nor am I an investment adviser- these following comments are just my point of view.
I am interested in buying this stock because these properties seem just like money in the bank. The logical thing to do is what the company seems to be doing. They can't mine this property but Molycorp sure can. The fact that heavy and light REE's are present must seem to Molycorp to be a gift from the Gods, and only 16 or 17 miles across the valley from their new processing facility. Just mine it and truck on the good highway and interstate to Mountain Pass and work it and sell it.
They sure ain't making any more rare earths to paraphrase a real estate phrase.
Elissa management is being smart like a fox, with money in the bank, to just sit there, and work their portfolio of properties, without giving in to the urge to get quick money in now, and ending up giving away the store. And I hope that feelers are out to the other players- if Molycorp really got worried, they have the money to plunk down anytime that they feel like making the move.
All that is required is to play the cards right and well.
Bill
