Larry, Mark, I have to agree with you both. There are some very basic points that are part and parcel of what you have both pointed out.
A junior mining exploration company MUST keep options open as to how to raise capital which in turn keeps it in a good bargaining position should the market start to get interested. (in other words, if you spend every month scraping to pay the bills, at some point, ANY deal, even a bad one, could be enticing just to stay solvent. If you can keep the check book in good shape you can now negotiate for the BEST offer which in turn makes the stockholders happy)
A junior mining exploration company with NO earnings and still lots to prove before we start popping champaign bottles, needs to have options as to how to motivate staff and management to stay on until the end.
That translates to options, warrants,etc..
I think we would be hard pressed to convince a market analyst that it was the PP of shares that pushed the price of Naxos to where it is today. Because the next question would be "why should your stock be worth ANYTHING?" To which we would only be able to refer to the potential at FL and a handful of assays. Any dilution of share value is really a future potential not a current reality because the stock price in the last week has been HIGHER than any time in the last 2 months and we have MORE shares out than we did two months ago. So the value of Naxos is not tied directly to less than 2% additions to the shares. At some point when the FL property is actually "valued" THEN it will be divided by shares which will have a relatively minimal effect.
Mark, as you have pointed out, there are some very legitimate issues that are reasonable to discuss, but as of now I have not seen any serious breaches of trust to the shareholders, no actions which clearly hurt the future potentials of FL and Naxos and nothing that I would say must be halted in order for Naxos to succeed. We are talking degrees of comfort and suggestions for raising the bar on company ethics. That's fine, but in my opinion, none of these issues are make or break for us.
Getting the drill program completed and the assays reported - now THAT is a real issue that must be watched carefully. Because no matter what we like or dislike about management, it still comes down to the simple fact that the only asset that we have worth protecting is what is really in the ground at FL. Without proving up an asset at FL, we are rearranging deck chairs on the Titanic. But if they DO prove up an asset and if CPM Group is happy with the results, THEN we can start to chill those champaign bottles.
Let's get those ice buckets ready and keep those assays coming.
Regards,
Tom F. |
