RE: Oct 30 2012 GSR.V News: GOLDSTRIKE TO FOCUS 20 GSR has narrowed the property holdings to the most prospective and higher confidence properties. In doing so, GSR has saved $400K cash thus retaining approx $900K heading into next season (minus any adjustments like the costs of he geophysical survey). IMO, this substantially reduces the need of a PP to help oversee operations over the winter months. In addition, GSR has stepped up to defend its share structure by eliminating 1.2M shares from being issued on properties it does not activily seek to explore next season. Prudent moves imo.
"To permit it to focus on its five most prospective targets next year, in particular the VG and Goldbank zones, the Company has dropped its options on sixteen properties and has negotiated reduced payments and extensions of the time for making future option payments on four other properties it desires to maintain in its portfolio. Specifically, it has arranged to have the November 1, 2013 option payments and all subsequent option payments extended by two years in respect of the following projects, and has arranged for the following reductions in the 2012 option payments on those properties:
- The cash portion of the 2012 option payment on the “Big One” claims has been eliminated.
- The cash portion of the 2012 option payment on each of the “Little Jimmy”, “Klaza” and “Gull” claim blocks has been eliminated, and the number of shares to be issued in respect of each claim block has been reduced from 500,000 to 100,000 shares.
The referenced extensions effectively give the Company three more exploration seasons to more fully determine the merits of these projects before deciding whether further option payments are warranted. In addition to reducing the Company’s 2012 option payments by $400,000 and 1,200,000 shares, all future exploration commitments have been eliminated. However, the optionors will have the right in each case to reduce the time permitted to make the next option payment to 30 days in the event that they receive a bona fide offer from a third party to option the subject property on terms which they are prepared to accept. The Company announced the renegotiated terms of the BRC option on October 10, 2012. The original option terms for all of these properties were described in the Company’s March 24, 2011 news release."