Re: splitting SMH is good
in response to
by
posted on
Oct 26, 2009 07:51PM
Selling off the Ontario properties is not a very good idea. It is too big of a package to deal to someone unless it was mid to large tier company and most of those guys wait untill there is an ore body to develop. I essance the junior is the new exploration arm of the major.By this I mean a major can watch on the side lines as Gold Corp. did with the Gold Eagle property and when they think it's worth it they scoop it. This way the expense of exploration is done by the junior and the major does not have to pay all the expense such as buildings,wages,benefits,support staff for the field staff. Look at Noranda a few years ago they got rid of most of their people ,offices and then offed their properties to juniors like Slam and Tribute.
To sell the property does not benefit the shareholder ;splitting the company does ,especially with some work done both in Guyana and Canada will enhance the 2 companies when it happens. With 2 companies you will also be raising $'s separetly and won't have to raise as much for each one as you would for one and thus less dilution
There are many ways to split the company and it could cost 1/2 million with a full blown IPO,but there are many ways of doing this that are less costly. I'm sure the advisory group is looking at all the different ways.