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Message: SGE- Strategic acquisitions/strategic alliances?

SGE- Strategic acquisitions/strateg... alliances?

posted on Nov 28, 2007 03:08AM

STRATEGIC ACQUISITIONS

Visionaries always look ahead.  All the recent land acquisitions are not for today in the sense that we will see a jump in the SP just because Sage picked up the property. In addition to what SGX is doing now with the exploration/drilling on some of the land they presently hold,  they are also strategically planning for the future through the acquisitioning of more 'suspect acreage'. That must mean that they believe that they have a future. That in turn must mean that what they are presently working on is in fact good and will yield very good results. Why bother spending more money to pick up more land if what you already have and are working on is nothing more than a variety of gravel pits. 

STRATEGIC ALLIANCES

Again, visionaries always look ahead.  Presently, without the aid of a billionaire  'sugar daddy',  the most common form of raising capital for a junior is to go the PP or similiar type route. With regard to dilution only, sometimes it becomes a race between what a company has and how badly the stock has been diluted as to whether on not their project will in the end prove to be profitable. Nigel is a financial whiz and he knows all the ramifications that go with trying to scrounge up the necessary dollars for the venture. Sure their will be PP's but I believe that the time will come when the CEO goes another route and that route will be a Strategic alliance, i.e. J/V  or some equity arrangement or a buyout.  It takes huge amounts of dollars to build a mine.  I am not saying it is impossible but Sage Gold's present team are more 'explorers and developers' as opposed to being 'miners' per se.

In any case, that is in the future and for now we hope to see some good/great results on what they are currently drilling. Still, in the back of our minds, lies the thought that 'IF' they hit some outstanding hole[s] someone [a major] may throw in the towel and say, 'enough already' what do you want for ALL your holdings. YES!!  Well folks, now you know the difference between a visionary [Nigel] and a dreamer [me]. LOL

 Best wishes to all,

Jerry Francis

 

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