Metanor Resources MEAOD

RE: RE: RE: RE: RE: RE: FLOW THRU SHARES

[JRaffles]

Forg - All your flow thru points are noted and are a helpful explanation, particularly as the Quebec tax implications are also referred to.

From my assessment, there may be short term SP downside's for the reasons you stated. However,, in the medium term for an investor, not trader, this should be neutral.  On the plus side, the raising of capital by way of flow thru shares, have the positive effects of :-

1. It will enable capital to be raised from investors who may not have bought non flow thru shares.
2. As a result of 1 above, MTO can progress mine completion, discounted by the value of gold extracted during the development progress.
3. The flow thru shares will provide MTO with additional developments costs by way of Quebec tax incentives.

In summary, for investors planning to hold until production, the flow thru investments received should be one of the final pieces of the financial jigsaw, required to enable MTO to commence earning money from gold production.  Although energy costs are rising, it is likely that gold will rise at least as fast and maybe faster than oil by production in late 2012.