Name your deal.
posted on
Aug 27, 2013 10:38AM
(Edit this Message from the "Fast Facts" Section)
You have been approached by an interesting pink sheet explorer/developer in its death throws. You are a well funded entity seeking a rare, investment in the PM sector. You are steeped in knowledge and experience. Validation is crucial. You will want a very good arrangement with a very weak party that has access to 'the goods' ... upon clarification of course. You will want a very high return in what most would consider a very, very high risk ... very expensive, capital intensive project ( although years ahead of a pure exploration project). It has the benefits of fairly quick commencement of return, possibly very high grade, low cost, very profitable production of gold and silver; in a politically safe (so far) country. All the infrastructure is in place and there is even a modern, mill and smelter. Its a 'paint by number' project that few have bothered to bother with because of a poor precious metals environment and a questionable management with a very poor image due to its multi year performance and reputation.
Shareholders have been misled many times over many years, either by need, intention, lack of ability or crisis management. There are many red flags and ownership wants more than they are entitled to. You will exact a very high cost and you will call the shots. There are outstandiing debts, angry creditors, hostile or opportunistic traders, no cash flow to speak of, over 1 billion shares out and a stubborn owner/management ... with a very unhappy shareholder base, but a very high insider share ownership and a large 'preferred share' situation with small ownership group. They want more thn they are entitled to considering their pefromance. On the other hand, much has been accomplished on the ground in spite of all of the above ... and the book value alone is worth noting. You will evaluate the potential of ore tailings on the property ... and you will investigate ore grade potential of the large ore veins at surface in a two mile tunnel that exists into the heart of the ore veins.
You know that gold and silver have bottomed out and expect them to reach well over $2000 and $50 by late year, progressing to $5000 and $400 in the following two years. You know that, if there are at least 4 million ounces of high grade, easily followed ore veins from within and above the ore body, the returns going forward are exponential. You know that the offering 'party' is head strong and can be difficult to deal with.
What is your offer? Time is running out for the management/ownership.