Golkor Inc (GKOR)

[Er0ck]

There is almost alway a stock exchange for both companies parntering up for a JV. The reason why KATX would have to give up some shares is quite simple, Mining is massively more expensive than exploaration and test drilling. And with out mining, it doesn't matter what's in the ground, there would be no way to get it out. Yes KATX does own the properties, but that still doesn't change the fact that no matter what, to get it out of the ground is going to cost a massive amount of money. And that is money the mining company is going to have to put up front, well before any profits are made.

To help off set this, the company doing the mining usually gets stock in the mine exploration company. In our case, I highly doubt that we would give them common stock, but instead I believe we would give them prefered stock. Either way though I don't expect it to be a big deal.