Let's clean it up further by removing some of the unsubstantiated claims I made that you pointed out. I left your comments in bold but removed items that had no backing. Also, since I mention the 1.49 billion in the 'Ugly' section, I removed it from your prior comments before we get there.
The Skinny:
SIRG is a company that OWNS 80% of the interest to dig at the Chloride Copper Mine. The mine is NOT currently in operation and the company is seeking funding to get it operational.
The GOOD:
1) Value of the ownership of rights to dig at this location (chloride copper mine) = $13M according to the recently agreed to purchase price of an additional 10% of the mine @ 1.3M.Apparently in order at this time.
2) Assets currently on the site of previous mining operation = 1.8MApparently in order at this time
3) Current conservative value of Sirg's 80% = $13M+$1.8M X 80% = around $12M Apparently in order at this time
Note: This valuation is extremely conservative as it only takes into consideration the value of the rights to dig + assets which are always less than the value of all the copper in the ground at this location. At this time no one knows what the issued is on the street and how much further dilution will be necessary to make this mine opperative is yet to be determined. I'd edit this sentence to "how much further dilution COULD be necessary".
4) Last we heard from the T/A there are ONLY around 200M shares outstanding. Sprycel has an email in to the T/A to ascertain the current number which he will report.
5) Market cap will depend on the number of shares issued from T/A.
6) Based on the LOI to obatin the additional 10%, It appears a funding deal is close because it is assumed that this would be the only way possible to pay for the additional 10%. On the flip side, another possibility to pay for the 10% is massive dilutive funding which will be discussed further down.
The Bad
1) $5M to get the mine functional according to this board and LMCATs DD. Apparently this has been difficult to secure in the current economy. In lieu of raising any capital from anyone, the only payoff capability would be massive further dilution
2) Currently, there are still notes from toxic short term financing that are being converted and/or will be converted in the future. If someone out there has done all the math, please speak up so we can add the number of shares that are likely to be diluted in the future. I believe it is around $25-100M but truly I don't know for sure. The CD's appear to be death spiral CD meaning they receive more shares for their financial support at a discount to the market price. This may create a shorting position for the CD owners if they select to go this route.
3) There will be additional dilution based on bonus shares for directors but all added together this equals roughly another 80M-100M based on the latest 8k. Also not so bad because they are incentive based and the mine must be in operation before any of this dilution occurs. Dilution to non producing entities is detrimental to to the company's future pricing. Respected Directors wait until the company is up and running, gaining revenue momentum before they execute their options. Those who do it prior to the necessary support of the company are deemed as a non cooperative player in the executive ranks of the company
4) Additional 20M shares were included in the deal that is to be completed later in March to purchase 10% of the mine. Don't forget they also owe a cash payment in addition to the 20 million shares of $1.3 million. Will this come from a further dilution of 430 million shares based on the current stock price of .003
The Ugly
1) DTCC Chill is still in effect. (I'm not too keen on the far reaching effects of a chill but I believe it limits certain transactions of this stock)Sprycel: THIS STOCK COULD BE HALTED BY THE DTCC AT ANY MOMENT LMCAT notes that the reasons for the chill have basically been satisfied.
2) No communication from CEO/board about Ugly #1.THE LARGEST FLAG FLYING ABOUT THE COMPANY'S OFFICE AND ITS CEO
3) What seemingly kicked off the chill? An ugly share structure change at the start of the year/end of last year to Authorize a TOTAL of 1.49 BILLION shares. This is always a scary prospect and should be taken as such. The positive spin assumption is that this increase was to facilitate a funding deal. I think we all know what the negative assumptions are (increase A/S, dilute, split, rinse & repeat).AGAIN, BASED ON THE SEC INVESTIGATION INTO THE CHILL OF THIS STOCK COULD POSSIBLY RESULT IN A HALT BY THE SEC
4) No communication from CEO/board about Ugly #3. Would be nice to hear that the A/S will be reduced once mine is in operation as Josey had mentioned previously. THE SEC NEVER APPRECIATES UNAUTHORIZED SHARE BEING ISSUED. IT USUALLY ENDS WITH A HALT FO THE STOCK UNTIL THE SEC IS SATISFIED TO A CORRECTIVE MEASURE TO THE SITUATION Again, LMCAT notes that the reasons for the chill have been satisfied. See her post for more info.
