Alexandria Minerals Corp ALXDF

RE:RE:RE:RE:RE:RE:RE:Alexandria is selling 40%.................

[production05]

Hey Easycoder,

The 2% NSR is somewhat interesting also.  It sounds like it`s based on 2% of all claims on the property (not just 40%). 

There is a very good chance that at least the open pit (if not the underground also, eventually) will go into production at some point down the road, via toll processing. 

As such, this 2% NSR will likely provide us with a bit of cash flow at some point later.

The property now consolidated 100%, the private company can now go out and try to seek a joint venture partner to advance the project.  It allows Alexandria to focus entirely on its core assets, while (potentially) still reaping a bit of benefits down the road, via the 2% NSR.

Alexandria now has 3 NSR`s, with future potential:

1)  Akasaba West Zone (Agnico) - 2% NSR will kick in after X number of ounces of gold production (1% can be bought back by Agnico for $7 million)

2) Small piece of the Triangle Zone (Integra) - 2% NSR, 1% can be bought back by Integra for $1 million.

3) Golden Arrow (today`s annoucement) - 2% NSR, 1% can be bought back for $750K (over the next year, otherwise the price will be $1 million afterwards.

I would still prefer Alexandria to negotiate with Agnico to buyback the first 1% of the West Zone NSR, to replenish our treasury (instead of selling any of our gold deposits).  However, if we end up keeping all 3 NSR`s then all 3 could eventually be (small) cash flowing assets for us.

Of note, this private company (Victoria Gold Mines East Timmins) is now ruled out as being the recent Murgor seller of Alexandria shares.

As a side note, it`s not clear if Alexandria sold the Eagle Hill Exploration common shares immediately after the Eagle Hill deal was announced a couple of weeks ago.  The Eagle Hill shares are now trading at $.92 (even higher than when I looked at it 2 weeks ago).  The Eagle Hill shares are now worth $437,000 to us (if we didn`t sell as yet).  The total value for all of our marketable securities is $564,000.