DNRR appears to have a future. Over the last few months, since DNRR has come onto my radar screen, I've been wavering between hopeful and skeptical.
I've spoken to some of the folks involved with the company and they seem to have a pretty workable business plan, but they've been fairly slow about executing.
Here's what I like about Denarii Resources:
1. Ambitious plans. If you talk to any of the persons involved, from management to their geologists, they have high hopes and big plans. The plan here is not to bilk a public company (merely a shell) for spending money, there really seems a desire to acquire assets and progress to operations.
2. Industry Connections. From the first PDF which told of their aspirations, down in South America, the Lota Bay Coal Concession to the recent announcement of the acquisition of 80% Touchstone Precious Metals Inc. assets. These sort of relationships are don't fall from the sky, they come about because of who know who and who knows what.
3. Detailed Financial Planning This is the one I was most skeptical of. Could they actually put the funding together to carry out the acquisitions they were hoping to acquire.
NOTE #1. The plan to utilize the Gold Loans from the German company to acquire gold producing properties and pay them back with bullion you're taking out of the ground is huge. Why? They will be basically be dilution free acquisitions. We use their money to acquire real property, we pay back loans with bullion from our mines...once mines are paid off, we own them free and clear.
NOTE #2 The recent 8-K Filing details the terms for acquiring the Touchstone Property. I love how the payments are set and that they are spread out over the next couple years. Dilution will be limited because funding will take place at whatever price the stock is subsequently trading at. As we acquire properties and bring them into production, the value of the company should increase, and subsequently, so should the share price.
As someone said, it still sounds like to too good a deal. This being said, I am leaning toward hopeful.
Milestones.... to watch for:
1. Successful placement and transfer to the company of private placement funds. We can well suppose that if Struans Group
is putting their money where their mouth is, we as investors are in fairly good position to benefit from their cash infusion to the company.
2. The making of scheduled payments for mining asset acquisitions.
3. Progress toward actually putting some of these mines into production.
4. And eventually, actually developing some income and cash flow.
