(excerpt from Jim Sinclair Gold report)

For corporations, the path for stockholders and management is arduous.  The stockholders in the price determination process deal with each other. Those funds do not go to the company.  The company must seek financing from other sources. Over the past five years in the gold mining industry, financing has been almost non-existent for companies not fully in production. Only projects already producing have had the ability to raise money.  Companies on the cusp of producing are often forced to seek funding from predatory lenders.  Average stockholders seek quick and easy results which are not obtainable anywhere in the mining industry.  Stockholders become frustrated and scream for results, and management screams even louder.  Few stockholders understand the hoops management must jump through to move ahead in the mining industry.  Mining is a front end loaded endeavor, in which, all money is put into the operation up front before a penny of profit can be realized.