Replies to post #41444 on Dutch Gold Resources Inc. (fka DGRI)

[H3Capital]

There are many in the lending world that would love to get just a piece of that profits

Precisely. However, without offering those people in the lending world convertible securities (i.e. a piece of the future profits) not many would loan a pre-production gold mining company a dime. Anyone with convertibles is going to convert once gold hits the ground.

[farfromrich]

The bigger picture is the issue that I am looking at, instead of just a single part of the plan that I may or may not like. I think if a person looks thoroughly at the options for start-up costs, and considers the total, long-term costs of each avenue, that the avenue the company has chosen will, FOR NOW, be seen as what it is, which is far from the most costly means of start-up. The reason for the wide-spread acceptance of the company diluting, is that there is a reasonable number of shares available to use for that purpose. It has been discussed by many on this board, and the idea was not as well received as what you see now.

[Simon Big Daddy]

Short,

In a perfect world, they would obtain more favorable financing. Trust me, it's easier said than done. Unless you'd been involved in trying to secure friendly financing for a small pink sheet company, you'd likely not fully understand how problematic it can be. I bet Hollis more than anyone would love nothing more than to find just what you'd suggest. Problem is that it's simply not available to them at this stage.

Let's not kid ourselves, what they are doing is not easy by any stretch of the imagination. I've long stated I believed anyone else other than Hollis would have walked away a long time ago. While it may not be currently pretty, most other companies in similar situations would have been out of business quite some time ago. You can say a lot of things about Hollis but quitter shouldn't be one of them.

It's critical that you remember that anything they do to shareholders, they are only doing to themselves. Management being extremely large shareholders only means that they too are paying a price for the company having to finance itself at such low levels. Remember that recent a recent filing revealed that Hollis has actually loaned the company close to $500k if I recall correctly, one must assume he'd like to be paid back, wouldn't you?

Considering this is clearly an equity play for management and they are only rewarded if the shares increase in value, I would hope they would only raise a little more needed capital to bring them to that inflection point when they may begin pulling some gold and monetizing it. Considering a small miners permit allows them to disturb five 5 acres, these recent test results are clearly important in identifying the best place to produce from.

If successful, and it remains an if, it would appear feasible that they may be capable of pulling as much as 10,000-20,000 ounces out of Basin Gulch annually just under the small miners permit.

I can tell you're clearly intelligent, you can run the numbers and figure what this could mean for potential revenues and earnings. Even based on 750 million shares which is the number in my own model, you get a possible conservative valuation a significant multiple of current levels.

At the current price, at least you know your risk and its very limited, just one penny in fact. Like they say, if it were easy, wouldn't everyone be doing it?