beermountain - RE: Truth HurtsHey beermountain,
OK, so LC is risky.
Even with ALL that risk you point out,I still like my chances better with LC the HPY. I figure I will get a doublehere at .03 many times over before I will with HPY at .28, and that's not to say HPY isn't anygood.
Oh by the way, shouldn't yoube over on the other board with all those hpy er's?
Good luck to you pal.
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beermountain - Truth Hurts
The truth hurts and the wannabee pumpers only recourse isignore. Now that I don't have to worry about these fragile individuals I canexpose info. For anyone thinking about this stock do someresearch.
From the Management Discussion:
Page 15 of LC's M&D
Financing shortfall
AtNovember 30, 2009, the Company had a working capital deficiency of$1,194,598. The FY-2010 private placement did noteliminate the deficiency, and the Company is seeking additional financing toeliminate the working capital deficiency and continue the exploration of ourproperties.
At March 24, 2010 the Company expects to have to raise at least $750,000 innon-flow-through funds in order to continue as a going concern, carry out our2010 exploration budget, and fully fund our working capital deficiency for thenext 12 months.
The Company's access to financing is not certain and there can be noassurance of continued access to adequate equity funding on acceptable terms.While management believes that we will be able to obtain the capital necessaryto continue as a going concern, the cost of such capital is expected to remainwell above historical levels. In general, the current poor macro-economic andgeneral market conditions appear to be significantly curtailing the overallavailability of capital, and increasing its cost.
LC’s business model – early-stage exploration –is plainly a high risk business model. LC is exposed to considerable geologicalrisk – the risk that our properties do not host economic mineral reserves – aswell as operational risk, and financing risk. This business model requires commensurately high-riskequity capital. LC is reliant on our ability to raise finances, and a continueddecrease in the supply of available capital due to systematic factors such asmacro-economic slow-down or capital market disruption would materially impairour business model.
In addition to the general financing risks common to all explorationenterprises, the Company’s on-going workingcapital deficiency, and the early, unproven stage of our property assets addparticular uncertainty as to the likelihood of obtaining future financing onacceptable terms.
Furthermore, current macro-economic weakness may reduce the value of theminerals we are exploring for. While we do not produce any metals at this time,decreases in the prices of the metals we explore for, primarily copper and zincwould impair the market value of our mineral properties interests, all else heldequal.
Management is aggressively pursuing financing opportunities with theobjective of ensuring that LC is sufficiently well-capitalized to carry outplanned business development activities during the current challenging marketperiod.
The Company has traditionally supplemented equity financing from time to timeby obtaining loans from related parties. These are used to provide interim,short-term financing to meet day-to-day cash flow needs, on occasion, and arenot intended to be a long-term source of capital. At March 24, 2010 and November30, 2009, the Company has short-term loans owing fromrelated parties in the amount of $88,775.
Our major capital asset – our exploration property – is not fully developed,and significant exploration and development work, subject to geological risk,will be required to recover the carrying value of the property.
Q1-2010 Flow-through eligible Canadian exploration expenditures
Pursuant to the terms of the subscriptionagreements of the Q1-2010 private placement, the Company must incur Canadianexploration expenditures totaling $350,100 by December 31, 2010, or facepenalties and liabilities to its flow-through subscribers. At March 24, 2010 theCompany has incurred qualifying Canadian exploration expenditures totaling $nil,and thus has an unfunded commitment to incur an additional $350,100 throughDecember 31, 2010.
The Company has no significant “Purchase Obligations” open at November 30,2009 or March 24, 2010 except for the management consulting agreements underwhich we pay $5,000 per month for the services of our President.
The Company procures office services, supplies and staffconsulting through an “Office Services and Supplies Agreement” with an officemanagement company providing corporate services. Pursuant to this agreement,such services are obtained for a monthly fee of $27,000 per month.
Warrants outstanding at a dime:
| Balance, March 24, 2010 | 41,593,500 |
I'm NOT saying LCwon't be successful. I'm saying be very careful. The pumpers, who make ignorethe red flags, are probably in for penny flips. If LC drills better holes thenthey have a chance. How many holes will LC be able to do with the cash theyhave? Also their is debt looming, which seems to be manageable fornow. Previous financing was flow thru and resulted in about $900K . It is goingto be tight with monthly burn rate, drill program, debt, etc. Unfortunatelybaby pumpers get upset when I tell the truth. A facts a fact.