Timmins & Beardmore - Northern Ontario
Focused on becoming a near-term Gold Producer
Message: JV with KXL?
Great points Clint. Completely agree.
To fully drill the area would require massive dilution from an already relatively large float. IMO the only alternative to JV or similar arrangement with another company would be spectacular results. In that case, financing would take care of itself and reverse split could take place to get float under control if they so desired. Typically reverse splits are used as a last resort desperate effort by companies who have nothing and need money to keep looking. But reverse splits by companies who have found something but just need money to continue to develop discovery (and, therefore, attractive share structure to big investors) is a very good thing. Obviously getting well ahead of myself. Personally, my hopes for Golden Extension for 2009 are sampling and drill results comparable to KXL and continued expansion of surface structure. Who knows what doors that could open for SGX? Hopefully (as I had hoped in 2008 LOL) share price can get into range so that outstanding warrants get exercised and some additional money flows to SGX without having to do another PP.
red911
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Re: JV with KXL?
in response to JV with KXL? by red911
posted on Jan 06, 09 10:34AM
Good question red.
I think this is something that SGX has to look at. KXL will obviously consider it as well but I think it is more in the interests of SGX. Likely by the end of his year we are going to need money again and to get sufficient funds to fully drill this area is going to result in much more dillution of shares. With 176 million already outstanding this is something that SGX should try to avoid whenever possible.
I think the biggest problem is that we may or may not have a willing partner. Why does KXL need us? They likely feel they have a sufficient land base and are worrying about getting their own results out.
I think SGX needs to come out with some exceptional results to show that we have the goods and then KXL will more likely come to the table.
I know, everyone here seems to just "know" that the golden mile is centred on the on the SGX property and therefore, we should make KXL come to us. Well I hope this is true but highly doubt it and until it is shown I think we need KXL a WHOLE lot more than they need us.
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