Healios KK Ord Shs HLOSF

Private Placement

[The300]

Slow day today.  Limited action as everyone starts to gear down for the holidays and awaits the closing of the private placement announcement.

I would imagine that the placement will be closing in short order.  If not this week, then likely the next, because after that the markets will be a ghost town.

I don't foresee any significant action for the remainder of the year (obviously barring any significant news).  I would be content to see the stock consolidate in and around $.60.  Any gapping would likely have to be filled at some later point  so I prefer the slow steady price appreciation that we have been witnessing.

This is a real company, with real assets and real third party verification in the form of an investment by Hudbay.

Once the placement has been closed, and the restricted shares issued, we will have a company with approximately 30 million shares outstanding (post current PP and  have approx. 40 million shares fully diluted - I'm taking an educated guess and have not gone through Sedar filings for an exact number).  Working with the 30 million shares O/S, leaves us with a company that has a market cap of approx. $18,000,000, a very tight share structure and $4,500,000 dollars in the kitty  for exploration and development.  Take out the cash portion and we've got assets and partnerships that are valued at a paltry $13,500,000 (IMHO).

I like to use VMS Ventures as a gauge for our potential success as it is located in relatively close proximity to Halo and has a JV with Hudbay as well and has a market cap of approx. $62,000,000 as per tsx.com website.  Its not exactly like comparing apples to apples as the deposits are different (Halo is open pit, so much lower production costs), but at the same time VMS hit some Monster numbers in depth and concentration.  Nonetheless, if we continue to prove up our resource and can start getting our feed processed by Hudbay in relatively short order (eg. end of 2011), we start seeing production dollars and I believe that achieving a comparable market cap to VMS is entirely feasible. 

As always the above is my conjecture (and in my humble opinion) and my reason for investing in Halo now and for the foreseeable future.

The 300 (Molon Lave)