these guys sent me the same email response
Hello,
Ifollow-up on your e-mail below. I understand the questioning of shareholdersand the Company is making every effort in order to continue to grow despite theconstraints it faces.
The future development ofSearchGold and firming of its stock price depends largely on the Company'spartners. Press releases are issued on a regular basis when significantdevelopments occur.
I refer you to our Q22010 Management and Discussion analysis :
Managementconsiders that SearchGold’s share price continues to hinder itsdevelopment despite the Company’s efforts to advance quality assets.Management therefore believes that the share consolidation would have providedgreater financial flexibility and helped in better positioning the Company toraise the funds it requires to finance its ongoing business.
Through innovative corporate transactions, SearchGold hasbeen able to retain an interest in all the important assets it has acquired anddeveloped during its existence as a public company. SearchGold remains committed to developingassets in West and Central Africa and willtherefore increasingly rely on its partnerships and the monetization of itsinvestments and various holdings to finance its development.
These two paragraphs sumup perfectly the current situation and future prospects:
- Given the rules of the TSX Venture Exchange that prevent financing activities below the $ 0.05 per share, the Company is no longer able to achieve funding. Not being at the production stage yet, SearchGold generates no revenue; the Company therefore has very little cash which entails very limited room to move.
- The key to the future is the work by partners and / or disposals of assets that will help develop projects / allow financial in-flows.
SearchGold's managementwas far-sighted with respect to this issue and had anticipated such a scenariofrom the beginning of the year. That is why a consolidation of share capitalhas been proposed at the Annual General Meeting in June 2010. Numeroustelephone conversations and press releases aimed to explain the currentsituation. The verdict of the 2010 annual meeting is however that shareholdershave refused this consolidation.
A public company being ademocratic institution, SearchGold has taken note of the position of shareholders.The Company makes every effort to further develop its projects in light of thisverdict. Notably, SearchGold has moved its offices from downtown Montreal to reduce itsoperating costs. SearchGold is also doing without the corporate services of Denis Tremblay, whoresigned in June 2010; this is also helping our treasury.
The current position ishowever quite limiting and in particular affects the speed of development ofSearchGold.
I hope to have been ableto answer your questions.
Sincerely,
PhilippeGiaro
President and CEO
SearchGold Resources Inc.
Tel/Fax : 32-10-45-53-59
Cell : 32-473-52-30-29
E-mail:phgiaro@skynet.be
Web Site:https://www.searchgold.ca
