EXLA Resources Inc. (EXLA)

[PennyStockDabbler]

The judge was arguing from the standpoint of whether the mine had enough gold and silver to be profitable to investors.

If my hypothetical scam artist had a mine that was likely to be profitable to investors, there'd probably be money in developing it legitimately. He also would have had to bid a much higher price for the mining rights because he'd be bidding against legitimate companies.

The hypothetical mine doesn't need to have enough gold in it to make investment in the corporation profitable. The investors are never going to see anything but the hypothetical scam artist spending corporation capital flying around the country and meeting with legitimate mining companies, trying to make it look like he's looking for a partner to develop the claims.

The whole point of my hypothetical scam is that a corporation uses investors' IPO money to buy rights to a mine and develop it for extraction, then a few individuals extract just enough gold for themselves after getting a freebie on shoring up old tunnels and improving the roads. They have the right to be in the mine and they can call the law if anyone else tries to mine there, instead of having shootouts with other prospectors.

Can it be that my hypothetical industry insider could find a property that was cheap enough to buy and had enough gold in it for him, if only he didn't have to spend his own money making it safe to mine? If it was a good mine, other companies would be bidding high prices for it!