VMS VENTURES INC. VMSTF

RE: RE: No support @ .50 cents....TIMBER!!!!

[U3082014]

Reed Lake timeline....

No advanced mining permit has been applied for....

They (HBM)  may decide to wait until Q3 or even Q4 before giving board approval to apply for advanced mining permit...

Lets just say for sh*ts and grins that they get temporary advanced permit by Sept. 2011

So over the winter they start prepping for pipeline for water and get some buildings in and gen sets set up and camp.

Then they start decline in Spring of 2012.

For the cidiots on this board....

YOU CANNOT start a ramp in the middle of winter......so get that delusion out of your heads right now...especially at Reed because there is Limestone issue which means they will be seeping alot of water.  They are going to have to case the first 10-20 meters of the decline in culvert to control the influx of water....

So if all goes well you  might(and I emphasize might)  see production in Q4 of 2012....with Royalties starting in Q1 of 2013.

VMS is on the hook for 30% of Cap Ex.   HBM will fund the 1st 50 million but VMS will have to pay back  15,000,000 to HBM.

So in 1st year of royalties for VMS they will owe HBM at least 15-20 Million dollars.


So what will the market be willing to value VMS at when revenues are still almost 2 years away if EVERYTHING goes smoothly.....if they hit any snags it will be even longer....add to that they will be in debt to HBM for 20 million in year one which will negate any huge profits for at least 1 year....so you might have to wait until 2014 to see anything meaningful....


I would say if your willing to wait 1.5-2 years VMS may trade at $3 if your lucky.....


GLTA!!!