Talked with IRAt the current SP, I just can't sit on my hands any longer. Prior to dumping in a chunk of change however, I thought that I would fire off one question to IR to see what their response was. My question was simply "Is EPL going to weather the current storm and be a going concern three years from now?" I found the answer, which was of course "Yes" (what else are they going to say?!), both thoughtful and encouraging. Have a read:
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I just returned from attending an investment conference in San Francisco, we
actually would have cancelled but were committed. In the end, I am very
glad we attended as there was much interest out there as well as optimism
and we were able to put into action our plan to make it through this
downturn which I will discuss in a bit. I was approached by a couple of
analysts that were speaking in a panel to the attendees at the conference
and apparently Haywood and Canaccord had put together a list of companies
that are likely to make it through this period and others that aren't likely
to make it, based almost entirely on burn rate and cash in the till. It was
brought to my attention that Eagle Plains ranked near the top in terms of
survivorability on this list.
What these companies did not know when making this list is our plan to
enhance this and maintain our treasury. This plan is to utilize our staff
and systems for consulting purposes for other companies in addition to
aggressively seeking more Joint Venture option partners. In this
environment companies are letting go of their exploration personnel yet are
still required to conduct some exploration work for regulatory requirements
at the very least and to continue exploration for their shareholders at
most. We offer a turn key solution for those companies that need this and
have a very capable team and geological analysis systems in place that we
have spent much effort in constructing. We are also very proficient at
report writing for projects which also will continue to be a requirement for
companies. To sweeten the offer, we will require that we get our hard costs
back for our consulting work but are open to taking some of the soft costs
in shares.
On to our Joint Venture opportunities. There are many companies out there
that are in the process of listing on an exchange and need projects of merit
that they can use as a vehicle for a qualifying transaction to list. The
clock is ticking on these companies as they have a specified amount of time
to find a project once they file as a capital pool company. Eagle Plains
previous work is now paying off as we have 11 of these projects of merit
available to list on and a team of geologists to do the work for them if
they are not technically oriented.
As a result we have developed a brochure of our services and are currently
contacting companies to let them know we are available. Given our long
presence and good reputation in the industry as well as our many contacts
and previous working relationships we are being well received with this.
So this is our strategy to make it through this and to maintain our treasure
but very importantly to keep our team intact so we are ahead of the game
when things turn around.
I hope this helps to answer your question, please call me at the toll free
number below if you wish to discuss this further.
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Long and strong, BB