My email from John Knowles
Hello,
Your message was forwarded to me and I would like to offer our thinking on the subject of consolidation, which we believe is necessary so that we can raise funds to move forward with our exploration work, for the reasons outlined below.
Let me start by saying that Wildcat has excellent properties, with San Gold having spent more than $1 million in the first option year on three Rice Lake properties and now planning $1.2 million of expenditures in the second year, gold discovered at Wildcat’s Burntwood property in the Thompson Nickel Belt, and the Reed property near Snow Lake, MB ready to drill. Our geologists are presently working on the McVicar property, taking channel samples from the Chellow vein which previously yielded interesting gold grades in grab samples. We require funding to continue working on these and other properties and we are working on transactions that we believe will add value to Wildcat’s shares and will encourage investors about the Company’s future prospects. Some of these transactions will use partners’ funds to advance our projects and others will require our own funds.
We are in the exploration business to make mineral discoveries in order to add shareholder value. This is accomplished by raising capital and making expenditures on the most promising prospects. TSXV rules generally do not allow companies to issue shares at prices below the lower limit of $0.05 per share, and this drives us to consider a share consolidation while being aware of the risks from other companies’ experience. In the past few months, we have completed market research and canvassed both staff and directors about a possible share consolidation. We studied some 15 companies that took similar action in 2011 and 2012. About two-thirds of the sample underperformed their relevant indices, which in most cases was the TSXV Composite Index. However, approximately one third did as well as, or out-performed their relevant indices. We recognize this situation, but believe it is the right path for Wildcat.
I hope you will agree that the best way to bring out value in Wildcat’s shares is to conduct well-planned exploration work on promising targets, and that a consolidation is a necessary path to funding this work. Without exploration funds, our ability to advance our projects is limited. However, as a fellow shareholder, I welcome your thoughts and suggestions.
Regards,
John Knowles
President & Chief Executive Officer
Wildcat Exploration Ltd.
Suite 203, 1780 Wellington Avenue
Winnipeg, Manitoba R3H 1B3
Telephone:(204) 944-8916
email:j.knowles@wildcat.ca