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St James Gold Corp V.LORD

Alternate Symbol(s):  LRDJF

St. James Gold Corp. is engaged in the acquisition, exploration and development of mineral resource properties located in Canada. The Company holds a 100-per-cent stake in 29 claims, covering 1,791 acres, in the Gander gold district in north-central Newfoundland located adjacent to New Found Gold Corp.’s Queensway North project; and a 100-per-cent stake in nine claims and an option to acquire a further 100-per-cent interest in 19 claims, covering a total 1,730 acres, in central Newfoundland located adjacent to Marathon Gold's Valentine Lake property. Its Grub Line property is located 3.5 kilometers west of the town of Gander, NL. The Quinn Lake Property comprises two contiguous mineral licenses totaling 700 hectares (ha).


TSXV:LORD - Post by User

Bullboard Posts
Comment by prospector24on Jun 18, 2012 9:51pm
204 Views
Post# 20028219

RE: variations on a deal

RE: variations on a deal

Personally, I feel they are going in the opposite direction they should be.  They should be looking at the sale of the BC property.  It has a good size reserve with excellent potential for increasing it.  That should attract a company with the resources (people, knowledge and money) that can develop such a resource.  Bard will never likely have the sufficient capital required to enhance or develop Lone Pine.  

And that's perfectly okay.  Junior companies rarely ever develop deposits.  Prospectors find them, juniors locate a resource and majors develop - that's the cycle.  Bard would do well to sell the deposit for whatever price (maybe a $50-100M) and take the cash and continue in the grassroots exploration business that is best suited to juniors.

If shareholders are insistent in Bard keeping the (BC) property they must be prepared to see a handful of holes drilled each year (at best) and modest tonnage increases each year.  Keep in mind each time they raise money, they dilute the company.  It already has way over 100M shares out.  In two or three years that will double.  At some point they split the stock 10 old for 1 new.  The cycle continues.  Can you see the point?  Your shares become worthless.

The better choice for shareholders is for the company to sell it's primary asset, get cashed up and take on some high profile grassroot properties (which I might add are cheap now given current poor market conditions).  A large cash position (from a sale) means a MUCH higher share price immediately.  Investors that have been around a while finally have the opportunity to get out if they want.  

The alternative is a 2-3 cent stock with a company that has no cash, limited ability to raise more cash, and at best be able to drill 2-4 holes a year into a deposit that requires 10X that to define.

Bullboard Posts