Talked with Mr. Kirby at Kensington today. Asked a couple questions about future intentions of Kensignton Resources.
Q. When do you expect to be listed on NASDAQ?
A. We expect to be listed on the Toronto Exchange within the next 45 days and have already submitted a 12G and will soon submit a 20F in prepartion of becoming listed on NASDAQ. Mr. Kirby also mentioned that the cost of getting listed on NASDAQ (at least) was nearly $200,000.
We talked a little bit more about how I was gathering a lot of information and/or rumors off the INTERNET and I mentioned to him that there was speculation that Diamond Field sold their property as a means of getting a piece of Kensington's future pie. I asked the following:
Q. Why would Diamond Field sell their mining sites in South Africa for a mere 2 million and 200,000 shares of Kensington?
A. Diamond Field is merely part of a larger company called Inco and in my opionion I believe they tend to rid themselves of parts of their organization that were not worth 100 million plus.
I didn't really understand why any company would do such a thing so I rephrased the question and asked again and Mr. Kirby replied "Most probably because it was easier for Inco to sell a piece of their organization for 2 mil and a few thousand shares and use it as a tax write-off."
Note: I may have gotten the company name wrong (I was trying to write as fast as we talked--guess one of you that knows who's the parent company of Diamond Fields could verify this).
I personnally find this rationale far more logical than that of what someone earlier had mentioned as a possible reason (Diamond or Inco wanting to get in on a piece of Kensington's play).
During the remaining part of the conversation, Mr. Kirby mentioned that Kensington intends to do a one million share financing when the price of the stock reaches $10.
Of course being totally dumb, I asked him:
Q. Doesn't that tend to make the stock that I own go down?
A. Well even though your share of the company becomes diluted, it usually has the opposite effect.
Q. What? How the heck can that happen.
A. The reason why a stock will go up in value is because when a company does a financing they are usually going to utilize the money to increase the overall value of the company.
Note: I did not press him about how the financing money would be used.
Finally, I asked one last question...
Q. Where can a person such as myself, not really knowledgeable in the whos, whats, wheres, whens, whys and hows of diamond mining, obtain a good book that discusses this subject in semi-laymans terms.
A. If you wait about 2 weeks and give the office a call you may be able to get us to send you a copy of CM Oliver's Diamond Investment Review.
Well that's about it.
My biggest reason for calling was to find out when they were going to get listed on other exchanges. I'm sure many of you would have asked more/different questions; but, what the heck, guess you could always call next time.
Looking forward to the $10 financing...yeah yeah, I should have asked what their time-table looked like.
Happy investing
Steve |
