Bobwins - bmgx
I read the 10Q from yesterday's filing. Sounds like they are abandoning the water exploration business. Also sounds like Mark Kucher "IS" the company. He is going for the royalty business.
Would be interested to here what you think after looking at this.
Thanks for pointing this one out, interesting potential.
"OVERVIEW
Since its inception in January 2004 Battle Mountain Gold Exploration
Corporation's (the "Company") focus has been on mineral exploration, with an
emphasis on gold discovery in the State of Nevada. The primary gold exploration
efforts are driven by the application of a hydro-geochemical testing program to
evaluate ground water chemistry that can identify the presence of gold and
associated minerals and elements in gravel-covered pediment locations, most of
which have not been tested due to the substantial costs associated with older
testing methods.
The mineral exploration and gold discovery efforts have been through our joint
venture, Pediment Gold LLC (Pediment). As of March 31, 2006 the Company had no
proven or probable reserves.
On November 28, 2005, the Company announced an agreement to acquire two
wholly-owned subsidiaries of IAMGOLD Corporation (TSE/AMEX: IMG/IAG), which hold
title to a portfolio of gold royalty assets, consisting of twelve net smelter
gold royalty interests. The asset purchase was completed on April 26, 2006 (See
additional discussion in Plan of Operations section). As a result of the
acquisition, the Company will be focusing its efforts on managing and expanding
the gold royalty portfolio, and will discontinue its focus on direct mineral
exploration. The Company's management believes this important acquisition
represents the Company's foundation in building a significant international
portfolio of gold royalty assets.
PLAN OF OPERATION
Since late November 2005, the Company has changed its focus from direct mineral
exploration with emphasis on gold exploration in the State of Nevada, through
its joint venture in Pediment, to acquiring and developing gold royalty assets
throughout the world. This is achieved by obtaining net smelter royalty rights
from currently operating gold mines and other sites in various stages of
exploration and development. A net smelter royalty ("NSR") is defined as the
right to receive a percentage of the gross revenue from a resource extraction
operation. NSR's can either be based on a fixed or variable percentage of the
gross revenue the mining operator receives from the sale of mineral product from
the property."
"On December 9, 2005, the Company announced the signing of a letter of intent to
acquire a 100% ownership interest in its joint venture, Pediment. In accordance
with the terms of the agreement, the Company funded an additional $150,000 for
completion of the 2005 field reconnaissance program and work related to the
Fletcher Junction and Hot Pots Project Areas (See 8-K filed as of December 1,
2005). For the three months ended March 31, 2006 the Company contributed $98,825
to Pediment to fund its continuing operations.
In April 2006, in line with the Company's current focus on developing its
royalty asset portfolio, we have decided to separate from our interest in
Pediment. As of the date of this filing no formal agreement has been reached
with Nevada Gold Exploration Solutions related to the terms of the separation.
The Company will be focusing its efforts going forward on managing the recently
acquired royalty portfolio, and looking for additional royalty acquisitions on a
selective basis."
WE HEAVILY DEPEND ON MARK KUCHER.
- ---------------------------------
The success of the Company depends upon the personal efforts and abilities of
Mark Kucher. Mark Kucher serves as sole director and officer of the Company,
including the Company's Chief Financial Officer, pursuant to an employment
agreement. Mr. Kucher and the Company may voluntarily terminate the employment
agreement at any time. The loss of Mr. Kucher could have a material adverse
effect on our business, results of operations or financial condition. In
addition, the absence of Mr. Kucher will force us to seek a replacement who may
have less experience or who may not understand our business as well, or we may
not be able to find a suitable replacement.
AI
