A couple of days ago, I posted that if anyone had questions to let me know. Since then I have received several private replys of questions. Rather than answer privately, I thought it would be better to answer them (as best i can) publicly. Here's the questions w answers (some from company; others fact and my opinion):
1. Q) Are u buying stock? A) Yes, both free trading and restricted shares....when I can
2. Q) Is company considering reverse split? A) Maybe; imo, will consider only after production, revenue, profits and if its the right thing to do; maybe in correlation to possible move to AMEX. (company knows the risks of this strategy) imo, i think it would be ok at the right time but NOT now...
3. Q) When is the mill scheduled to start up? A) Late summer; late August/Sep 2008. Also depends on financing...each week without financing pushes start date back a week...
4. Q) Is company considering hiring another "firm" to manage stock and why? A) Yes, Co. absolutely needs a bridge/liason to the investment community. I'm 100% for it as long as its a credible firm w reasonable cost. In the article I posted on evaluating mining stocks, it states very clearly and firmly that mining stocks need to be promoted especially if they have something....need the story to get out.
5. Q) Is company close to financing, how long and what are terms? A) Yes!! And very soon!! IMO, by end of May/June...my understanding is there are now 5 options being discussed, negociated and considered. IMO, I believe it will be a combination of a couple. Terms are tough; 2 debt (high rates plus snags); 2 equity but none of the equity options dilute us. Shares are already part of o/s and would be "shifted" to equity option. FWIW, goggle "Industrial Revenue Bond"...very interesting....hummmmmm.....
6. Q) Is company selling shares into the float? A) No, current financing is sale of restricted shares and some short term loans.
7. Q) Are insiders selling? A) NO! not that I know of...can't anyway due to restrictions. My understanding is 80%+ are insider shrs and 90-95% of o/s are restricted.
8. Q) What is company debt? A) Don't know exactly...I think $25m+; mostly bridge loans etc which are past due....creditors understand and are awaiting financing which will take care of this issue.
9. Q) What are your biggest concerns? A) Financing, bridge loans (which financing will take care of) and will mgt execute biz plan. imo, they muffed up the reverse merger (they will admit that)...can't afford anymore mess ups....
10. Q) What will be the stock price? A) My estimation is .10 in a firesale (won't happen) and $1 at the end of 2009. However, with favorable exploration results (finding mother lode that is there), stock could go to $2+ in 2010+...i can wait...
Hope this helps...
jtf
AI
