Rick and Morag,
Thanks for your posts today. The following are just a few comments FWIW and IMHO.
1. There is no proven tonnage at this point. This is clearly stated in the appraisal and valuation of the property done by Southampton for MLSM. This document is also on MLSM's web site. It was the basis for valuation prior to transfer of Potter property title into MLSM.
2. Talk of tonnage without grade is meaningless. I too heard various figures of "tonnage" from company officials but never once heard of what substance and/or grade. Figures ranged from 2 million tons at hand to 20 million as their target. Regardless, it's irrelevant.
3. Rick mentions trading values and going without HDG, etc. Be careful! Late last year, MLSM was trading for 15 -20 cents. Mid-December 98 they announced a deep hole program to commence while a financing effort was underway. That got the stock to 35 - 37 before it eased to 25 by early March. On March 9th, a 1,355,037 unit financing at .30 was closed (1 share plus 1 warrant per unit) and 9 days later trading was halted for results from one hole. This one hole got the stock to a close as high as 65 cents after which it dived to the low 30s. It was Millstream's announcement of a $19 million dollar financing by HDG on April 15th that kicked the stock to new highs and closes in the 65 -70 range for a few days. MLSM immediately announced another financing (private placement on April 20th) for 1.1 million units at .50 cents of which HDG took 800,000 units and others 300,000 units. Since that date, the stock has steadily declined - one reason being the large number of shares freed after 18 month hold periods - another being lack of information and progress with their exploration program.
4. You both state MLSM as saying they may cancel the deal with HDG. However, if the deal was done as planned, the Potter property was to go into a limited partnership. (check their last NR for details). Was this done? If not, why not? Does MLSM propose to drill without assistance of their partner?
5. Rick mentions their Airport property and the Montana property. I've noticed that MLSM mentions them more now. Why? Is this a diversion because Potter may be tied up in litigation?
The above points are facts - what follows is opinion. A few things appear obvious. Their last NR was erroneous. The two which preceded were also incorrect. None of us really know any hard details about anything. To be fair, none of us know the true nature of dispute between HDG and Millstream. However, if HDG have been subjected to the same level of nonsense as shareholders, they have my sympathies.
Bob |
