Southridge Enterprises Inc (SRGE)

[stervc]

Here's why the “JV Deal” might be better...

Within one of their previously released PRs, the company stated below...

http://ih.advfn.com/p.php?pid=nmona&article=55129091

…The Company and its board of directors are currently discussing the possibility of a quarterly cash dividend to its shareholders from a certain percentage of earnings made from such Joint Venture. Southridge is in negotiations with this major gold producer to inject an amount of roughly $680,000,000 into this Joint Partnership in order to help the Company aggressively mine Cinco Minas and it's up to $5 billion in Gold and Silver reserves. The size of this project is rather large and that's why the company is in serious discussions with a NYSE major producer because it feels this will allow Southridge to aggressively mine and explore the property at a much faster rate therefore leveraging the price of Gold at today's market value. …

This means that SRGE would still be planning on receiving a cash injection of $680,000,000 from the major NYSE producer interested in doing the Joint Venture (JV) with them. Then based on how it is mentioned in the PR, SRGE shareholders would still be getting a cash dividend to include the cash dividend being a quarterly dividend.

Keep in mind that from the post below, it will only cost SRGE $110,000,000 to give us SRGE shareholders the .20 per share cash dividend that was mentioned:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81790079

So, taking $110,000,000 from the $680,000,000 that would come from SRGE agreeing to do the JV deal still leaves SRGE with $570,000,000 in cash (derived from $680,000,000 - $110,000,000). This leads me to think that from this JV, we would probably get a ”one-time” cash dividend of .20 per share then we would get a quarterly cash dividend based on how much Net Income is generated from the maturing of what the remaining $570,000,000 would do for maturing SRGE into a major operations in itself. In my opinion, this quarterly dividend could still be gracious if not better than the .20 per share dividend. I will have no problem hanging around to see.

So, in my opinion, the JV deal could be better than just SRGE selling the Cinco Minas property for $550,000,000. Still, either deal with either NYSE company would be awesome for us SRGE shareholders.

v/r
Sterling