Replies to post #26892 on Golkor Inc (GKOR)

[B402]

Thankyou Sir. Good Day to All. eom

[investor911]

Great Post!!!. KATX is coiling up IMO.

[Rick-UK]

The press release on January 19th said: This is expected to be the last change in capital structure to complete the portfolio of growth and ventures the company will be pursuing, barring any major joint ventures that may be pursued.

http://www.katexploration.com/PressReleases/Press%20Release%20January%2019%20-%202010.pdf

As I understand it - and I should say here that my understanding on this is very limited - a large mining company may want to negotiate a shareholding in a junior explorer as part of an overall deal, which might potentially encompass more than just one specific mine opportunity. This gives them a slice of the inevitable hot PPS action once the partnership is announced and joins the two company's fortunes together more securely. I may be completely wrong on this, so if anyone here has some experience please do chip in.

Rick

[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.