Post by
cmunny on Apr 28, 2008 12:31pm
Chinese are buying 20%
Mr. Radez informs us at the Chicago PM conference that the Chinese are stepping to the plate with some hard currency (well, their fiat $$). He mentioned 20 pct of the company sold, which won't be a lot of cash at these prices. DLKM prinicipals couldn't be at the conference because they went hat in hand to get the $$. Also some remarks about properties that had Bob M. all excited, but I didn't quite catch that. He was a bit coy as they tend to be with the inside info on current financial arrangements.
Mr. Radez and Bob M. were very high on this company a couple years ago already. I've tracked back through the NRs. It looks like this thing went public with around 10-15 milion shares ... they issued 4 million more for some properties ... another million or 2 for the $2.5 mm pp to do the shallow 25 hole 2,500m program that took a year and found hyena dung. I spent some time trying to figure out what these guys actually put in as seed money when companies like this start up. I gather its not that much ... a few hundred thousand if you're just getting some property rights and doing some drill target prep. I see they were spending $100,000 on some preliminary work early on. This thing started trading at 50c and went to 3.50, so I suppose you could be pretty excited about a 50 or 100 fold return on 10-20k, which seems to be all that some of the priincipals put in. Bob M is apparently the biggest shareholder ... perhaps he is the B-M trust with 4.2 mm shares. From what I gather, the boys have ridden this one all the way down for the most part.
They keep acquiring properties, though, and with the Chinese stepping in with cash and, apparently, geological expertise, there appears to be real value here at these prices. Should be trading value, too, with just a flop back to 30c would get them back to where they were b4 the August 07 meltdown. Big volume and crosses obviously coming in on this thing last week. Gaps at .15 and .12 should be great opportuntities Looks like more volumve coming in today w/ about 130k shares so far.