On share dilution:

I said it yesterday. They actually raised most of the cash they have in the coffers right now in November at 68-75 cents per share, which is about as good as they could have done. Maybe if they can hold onto their hats for a few months, they can do the next financing at well above that.

I agree with Barker to a certain degree in that some of the forces causing dilution are out of Webb's control. He can't control the market's valuation of juniors. By rights, having proved up a lot more since last fall, the company could be valued over 80 cents right now.

I also think it may be a bit unfair to compare ARU to TDC in a lot of ways. First of all, they are operating in completely different market times. Secondly, they are operating in completely different theatres. Thirdly, I applaud those who made good money off of ARU, but just look at the political risk right now. The government is still threatening to take over the whole project (as far as I know). They could have done that any time. That could have been dead money.

There have been times when a company in Tyhee's current position would be valued over $2.00. If that was the case, we wouldn't be complaining. It's just a rotten market right now, and the only way I can feel better about it is to keep hunting for all the bargains and not worry about the money I am down in my juniors.

Aurelian could probably cut exploration corners in ways that Tyhee can't, operating in Ecuador. Realistically, too, some of the greenfields in Ecuador may not have seen as much exploration and development as the Yellowknife belt. The best known prospects around Yellowknife were mined a long time ago. It's interesting that Bigsky may have a lot of gold that close.

And the government of NWT will never, ever, wait until TDC is at the scoping stage and then threaten to nationalize the entire project out of the blue.

Tyhee has something. Maybe a lot of something. That's a lot better than nothing. And I'm convinced they will make it. I don't know how much money they'll make for me, but I'm willing to find out.

If you really want to see a company that finally has something (actually a great deposit) but may not make it because of dilution, then take a look at Pacific Comox (PCM)

Everyone says that a reverse split due to dilution is the kiss of death. I know of one company that seems to have pulled it off. They actually have survived it, and look to do well in the next several years. They had some major dilution problems, a lot more than Tyhee. That company is Yukon Nevada Gold (formerly Queenstake Resources).

I also know a lot of juniors that engage in elaborate schemes to spin off new companies to reduce dilution. I'm thankful that Tyhee is just focussing on the business in front of them.

MR