Re: NEWS - Sage Closes Private Placement With MineralFields
in response to
by
AGORACOM
posted on
Oct 27, 2008 04:52AM
Focused on becoming a near-term Gold Producer
Good morning folks,
Common sense says that there has to be a reason for the MineralFields Group to want to get involved with a small little junior named Sage Gold. I took a look at them AND their criteria [see bottom of the article] that is set up that must be met by a company before they come on board and that was good enough for me. This is especially so in a day and age when some banking institutions are not even lending or otherwise doing business with other banks and yet these guys are doing business with us. They have an excellent reputation that would not remain that way if they kept backing losers. Lots of clues here. A careful read is necessary. Please take the time to read it.
Best wishes to all here,
Jerry
1. MineralFields Does Not Dump Shares: Some flow-through funds simply dump large quantities of an issuer’s shares on the dissolution of the fund. Other funds dump stock as soon as the 4 month hold period expires. Not MineralFields ! First, MineralFields has its own mutual fund, into which we transfer our flow-through share portfolio on the dissolution of any of our flow-through limited partnerships, on a tax-deferred basis. MineralFields only invests in companies where we feel that the story will be good not just for a year or two, but for the longer term. That is why the quality of a company’s management is the single most important criterion in our evaluation process. In those cases where MineralFields feels that it is appropriate to sell part of its holdings of a particular stock (for example, to take some money off the table when a stock has appreciated significantly) and the stock is not trading large volumes, we will first call the company’s management, and ask if there are any significant other shareholders who may wish to purchase a block of shares from us. And finally, if we ever do sell shares on the open market, it is in an organized way that does not move the market – because all of our funds are administered by a single trader, there is no confusion, or competing sell orders from different funds where we hold an issuer’s stock in more than one of our MineralFields flow-through funds. Bottom line: we often buy flow-through shares from an issuer more than once, and we value our reputation in the industry as “the good guys”. While we are tough negotiators, we are also fair. As an organization that values transparency, we welcome any issuer who has not dealt with us in the past to contact any issuers in which we have invested, and we can supply a complete list on request. You will find that there is 100 % satisfaction with MineralFields among all of our issuers, and we often receive referrals of other resource issuers interested in flow-through financing from our existing issuers |
2. MineralFields promotes the issuer in its widely-disseminated newsletters: Right after the final closing of every one of our flow-through fund offerings, MineralFields issues a detailed reporting letter to each of its investors (and associated referring financial advisors) indicating in which companies MineralFields has invested, and giving a long explanation of the reasons for each investment, and each company’s “story” in a positive light. The investors and others then typically track the companies going forward, and MineralFields continues to report on a quarterly basis to its captive audience, and updates each company’s story. There are literally thousands of high net worth and high income investors, as well as their financial advisers, who receive MineralFields newsletters. And there is no doubt that many of our investors, and their financial advisors, go on to purchase more of a company’s stock in the open market if they like the story, thereby providing added support to the stock price. So even a small flow-through investment by MineralFields will yield a disproportionately large payoff in terms of the added profile and publicity for the company throughout Canada, as MineralFields offers its securities to investors in every province and territory. That is why in the past, issuers who have not even wanted to raise any flow-through funds at a particular point in time have agreed to have MineralFields invest a mere $100,000, in order to leverage this small financing to great publicity for the company. Of course, MineralFields normally prefers to invest much more than $100,000 in an issuer, and will go as high as $7 million or more. |
3. MineralFields Can Help Raise Hard Dollars for Issuers: Our rollover mutual fund is able to invest in hard dollars. In addition, as of 2007 (Q1), MineralFields will be offering a "hard dollar" mining limited partnership to the public. |
4. MineralFields Can Help You Receive Unbiased Institutional Coverage: Our associated senior mining analysts (Ronald J. Wortel, P.Eng, MBA and Barbara Thomae, P.Geo) can produce research reports that will raise your credibility and profile within the investment community. For recent reports (March, 2007) on Ursa Major click here, and for Patricia Mining, click here for pre-takeover report and click here for post-takeover report Click here for a recent report (August, 2006) on Normabec. In fact, for a press release referring to our report being presented at the Munich Mining Convention to institutional and private investors, click here |
5. MineralFields Can Help You Increase Your Institutional Ownership: Every junior mining company aspires to have some institutional ownership, and the more the better. Once you get one or two institutions to invest, more usually follow. As an institutional purchaser, MineralFields helps fill the gap. |
6. MineralFields Will Help You as a Stakeholder in Many Diverse Ways: Once we invest in a resource issuer, MineralFields considers itself a stakeholder in your company, and we take this responsibility very seriously. It means that we will not just sit back and hope that our investment pays off. Rather, we will make concrete suggestions as to how you can improve your company and your stock price. For example, we recently had occasion to suggest to three of our issuers that they engage the services of a credible Investment Relations firm which had been very successful in raising the profile of two of our other issuers in the recent past. We have helped issuers draft press releases. And we are interviewed every 2 weeks on a radio program that covers the commodity sector, and each time we mention 2 or 3 companies in which we have invested to help "tell the story". You can expect us to take a continuing, constructive interest and role for our mutual benefit. |
7. MineralFields’ Affiliated Geological Consultant Partners, WGM, can also help: MineralFields has a special, exclusive relationship with Watts, Griffis and McOuat, who are among the most prestigious of international geological consulting firms. There are many synergies that can result when MineralFields becomes a stakeholder in your company, as the capable and respected geologists and engineers of WGM are also very well connected in the mining industry. |
8. No Strings With MineralFields -- We Earn Our Wings Each Time: Tired of onerous ROFR (right of first refusal) clauses in agency agreements ? MineralFields Group's associated financial intermediary doesn't engage in this practice. How refreshing ! |
9. No Hidden Agendas -- With MineralFields, what you see is what you get. |
10. Access to International Exposure -- MineralFields is now actively raising money in Asia, Europe, and elsewhere. Rather than merely focusing on a small pond (Canada), we are exposing issuers with whom we have a relationship to a much larger and more affluent audience, the kind of investors that can explode a stock price on the upside for an issuer with the right assets. |
11. We Know How to Keep a Secret -- Loose lips sink ships. Our tight-knit group is sober, discreet, and understand that others in the financial community are not necessarily so. |
12. Our Associated Financial Intermediary Can Lead A Very Successful Financing for You -- Unlike mining analysts who work in fee-driven shops where pressure is applied even where the analysts don't really believe in the company, our associated mining analysts will only write a report on a company in which they really believe. If you honour us by designating our intermediary (First Canadian Securities®) as the lead agent, and we accept the engagement, not only will you have a professional and thorough report drafted by an impartial and well-respected group, but MineralFields will take down the lead order and "put its money where its mouth is". MineralFields has a reputation for being very savvy investors (for example, we doubled the NAV on one of our funds in 2005 after only 5 months), so it will be easy to place whatever we don't take down among our credible contacts on the street. |
To contact MineralFields about raising flow-through or hard-dollar financing, click here. MineralFields has, through our associated financial intermediary, two experienced full-time mining analysts -- Ronald J. Wortel, P.Eng., MBA and Barbara Thomae, P.Geo. -- who will assess your company from either our Toronto or Vancouver office. |
Our Evaluation Criteria
MineralFields rigorously applies the following minimum requirements to
any decision whether to invest in a resource company:
(a) shares listed on a recognized Canadian stock exchange;
(b) experienced and well-respected management;
(c) geographic diversification of mining properties;
(d) existing properties with promising exploration targets;
(e) deals in place or a declared intention of obtaining financing
from major mining companies, or otherwise joint venturing with
them;
(f) offer potential for future growth;
(g) fit MineralFields' proprietary market capitalization, share price
profile, and other investment requirements.