Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Advanced Explorations Inc. ADEXF

"Advanced Explorations Inc is a development stage company. It is engaged in the acquisition, exploration and development of properties within the resource sector."


GREY:ADEXF - Post by User

Comment by Greenandgold.on Jan 10, 2012 3:15pm
227 Views
Post# 19387613

RE: 2012

RE: 2012

I'm not disputing that XinXing could wire AXI $50 million today. But can they do it legally? Every company that's formed a joint venture deal with the Chinese or Asians (see Adriana, Century Iron Ore, NML) has faced delays with negotiation, execution and government approval of the deals, and formation of joint venture vehicles. There are many formalities the Chinese government requires and it's a very long process (as AXI is experiencing with its relatively small debenture transaction). Imagine the process involved with a transaction that's 10X larger!

Even with a favorable feasibility study outcome and XinXing signing the JV deal, with all the formalities required, I don't see how AXI gets its hands on real money before Q4 2012. The reality is if AXI wants to have a drill program in 2012 they're going to have to raise a lot of money in the equity market or with a Tuktu investment deal.

With this company's burn rate (AXI only had $3 million at the end of September) I guarantee you're they are currently dead broke, and probably running a working capital deficit. A 10,000 meter drill program in Nunavut will cost $10 million or more.

 

<< Previous
Bullboard Posts
Next >>