Gowest Gold Ltd V.GWA

RE:RE:Shares for Debt

[Tim2Agami]

Muskokawolf wrote: So now we have a clean slate from a finacial standpoint.  Now I will say something that hasn't been mentioned on this site, the elephant in the room.  Does anyone think in these days of careful language think that Chinese ownership is hindering our stock?

Well, the slate has improved, but not quite "clean" yet. At last report (Q2 ended 30 April) , there are still $19,944,068 in liabilities (which will change by the next report) and a pretty meaty accumulated deficit, but, with regularly increasing assets (proven and probable reserves now being drilled for), this is certainly evidence backing the "president's letter" of a year ago in which he reported:

"So much has happened over the past twelve months, including building a new management and technical team, initiating a significant financing, and carefully revising the mine plan. This latter work, which is ongoing, has been based on a combination of additional data we’ve developed and a changed financial environment. With these facts in mind, I know how anxious our loyal stakeholders are to learn about our progress toward putting our company back on solid financial footing and restarting the Bradshaw mine. Our new management team and Board of Directors are working hard at finalizing the details and timing of these events, and I look forward to being able to provide a more fulsome report on our progress in the very near future". 

As to the Chinese concern, it may have been a red flag (with yellow stars) if the resource extraction of the North Timmins mine and properties was focused on "the electric metals", industrially strategic resources, or rare earths -- drawing government attention if not intervention -- but GWA and its investors --- vested with enormous patience and risk tolerance riding the Lassonde Curve -- are engaged in the precious metals sector.  Who else dares?  Who else cares?

As to your math on ownership -- which you stated earlier as 97% Chinese -- I think a review of the figures from the last news release on "the aftermath"  of this matter is in order.

Lush land: 46.50 %

Greenwater:18.20 %

Jinshengda: 9.09 %

So just under 74%

Still pretty hefty and elephant sized ownership by the Three Mandarins, but not nearing the point where the minority could be bought out at current prices to take the mine private -- although any decision to sell or arrange a merger of the mine and assets needing shareholder approval has been made less complicated for the majority owners. 

Any increase in ownership by the Celestials down the road to the level you suggest presumes full exercise of the warrants, but it does not seem any of these warrants are in the money --yet.  If they reach that point, it will be more than the Chinese who will be dining on fortune cookies, and there will be a lot more in the Tupperware than #bairenfan.