Dynamix Corp (DYX was Dakota Resources, DAK) Message Board

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Gold/Mining/Energy : Dynamix Corp (DYX was Dakota Resources, DAK)

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To: bill718 who wrote (286)	7/17/1997 7:28:00 PM
From: Donald F. DeKold	of 587

I think folks are tending to be a "little" negative about DAK's prospects. Notwithstanding the fact that DAK IS a small cap company trading on the ASE, there are some things to regard as positive. ====================================================================== 1.) DAK is a real company...a genuine and legal corporate business entity. It does not have a glitzy PR department or a large office staff. They are a "bare bones" operation not incurring a large overhead. They can't afford one nor do they need one. 2.) Presently the company has little capital...and no debt. They probably have had the phone turned off to keep from being bothered by shareholders. This is probably needed so that the two operatives in the company can get their voluminous paperwork done. 3.) As far as I know, the company IS Mr. Robert Bateman. Unlike some CEO's of small cap Canadian companies, there is more to feel confident about with the gentleman who heads DAK. I know of a case where a company CEO is out there literally screwing the company's small investors and whose past is questionable. Mr. Bateman, CEO of DAK is a 33rd degree Mason and an honorable man. I feel he is just as frustrated by the drought in venture capital in this post Bre-X era. I believe Mr. Bateman would appreciate encouragement from his shareholders rather than their expressed doubts and derisive comments. 4.) There IS a gravel deal reaching closure. The significance of the gravel deal is that it will contribute cash flow for the company to pursue their other more glamorous mining prospects. I don't know whether a deal will be closed for ten million tons of gravel or a hundred million. Gravel in the Toronto area fetches C$4.50/ton. 50 cents of the $4.50 amount must be deducted as a royalty payment. I'm sure there will be expenses due to excavation, washing, grading and delivery. These operational expenses will also reduce the profits to the company. But...suppose they end up with 25 million tons and CLEAR a dollar per ton. That gives the company a C$25 mill war chest. (Hey, that's better than what Antares was underwritten for.) 5.) Now to criticisms regarding the nature of the "ore" this company will mine: No, Violet, gravel is not glamorous like gold. But it is a construction material in demand in the rapidly developing bedroom region above Toronto. ====================================================================== I don't know what is going to happen with DAK's gravel deal. 80% sounds like pretty good odds to me. Remember these small cap ventures on the western Canadian exchanges are HIGH RISK, HIGH REWARD plays. Things don't always work out. Mr. Bateman has a long record of success, good connections, and much experience to bring to bear on the company's present difficulties. Frankly I'm giving him my vote of confidence, and if he loses and I lose, well that's just our tough luck. Don

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