Here I go again, posting on a stock not mentioned here before...
Silver Dragon could become another Silvercorp, and they are now a producer....
Message 23046068
I rec'd. this from a co. insider Aug.24....since then the stock has done very well indeed....
[edited]
"There is no other silver junior that has
accomplished as much as we have in such a short period
of time....
All of the short sellers of SDRG have disappeared, as they realize that we are now a viable growing company, and they stand a real risk to sell shares of our company that they
don’t own....
Mark has spent the past 2 years incubating
Silver Dragon Resources, filing the proper filings
with the SEC, paying numerous lawyers and auditors,
and bringing this company from the pink sheets to the
NASDAQ bulletin board. Marc has spent of $1,000,000
USD of his own money in doing so. We are about to have
a listing on a major exchange-the TSX , in the next
3-6 months and hopefully the NASDAQ National Market
within the next 6-12 months....we have purchased a working
mine in Mexico, 9 silver properties in China, a
proposed 60% interest in a million ounce per year mine
in China, and built $60 million in market cap...
Mark and I both realized in March 2005 that silver
was a tremendously undervalued commodity. As you know,
I have been an investor in gold juniors on behalf of
clients previously. Mark has extensive contacts and
business dealings in China, and has witnessed the
building boom there firsthand. It was at that time
that we both made the decision to pursue the purchase
of silver properties in China and in Mexico.A deal was
struck with Sinosilver to purchase a joint venture in
one out of 9 properties in the Erbahuo silver
district. Money was raised at 10 cents/per share, as
the company was only beginning. All of those initial
investors have gone, only my core investors and Mark's
core investors are still involved, invested for the
long term .
David Morgan was very keen on the Sino
Silver properties. He visited them and recommended the
stock to his people. We were blindsided, along with
him, when Sinosilver was delisted for not following
SEC regulations. It tarnished us even though we were
no way involved in any activities attributed to
Sinosilver. We have never been investigated or even
queried by the SEC or any other governmental agency.
We realized the value of the Chinese properties. Many
of our investors are high net worth individuals from
Asia, who like the fact that we have both Chinese and
Mexican properties. If the market valued the
Sinosilver assets at $120 million (40 million shares
out at $3 per share) at $6 silver, we believed that
these properties were a steal with the delisting of
Sinosilver. From September 2005 until February of
2006 we had long, arduous negotiations with
Sinosilver. We wanted these silver properties in
China.We agreed on a purchase price of $600,000 and 4
million shares, at that time valued at 25 cents per
share. $1.6 million dollars was the amount of money
that Sinosilver had invested in the property, they
just wanted their money back. When they saw that our
stock ran up to $1.50 - $2 based on a letter of
intent, they got greedy, and tried to change the deal.
Our stock fell and then recovered to trade in the 80
cent to $1.20 range. We have finally closed on the
purchase in the USA.
Why am I giving you all of this background? I want you
to understand how we have managed to buy fantastic
properties so cheaply, and how we have managed to put
a global silver company together in such a short
period of time. It wasn't easy, we have had
detractors, and people who do not believe in the
silver story writing negative articles.
These type of articles have stopped as the short
sellers have had to look elsewhere for negative news.
The news from Silverdragon has been nothing but
positive since.
I want to give you another example of Mark's
professionalism and honesty. We first went to Durango
in July 2005 and descended 450 feet into the bowels of
the earth.
Our geologist, Bill Reed, formerly from Hecla,
explained to us that it was a fantastic overlooked
property and we should snap it up. Hecla had tried to
buy it four times, they could not get the 70 year old
owner to sell. Why did he sell to us? He likes us and
respects us. We negotiated the deal to purchase Cerros
Las Minitas for $1.6 million dollars and 2 million
shares when silver was $6 and zinc was 55 cents. Of
that Hymie (the older owner) took $800,000 and no
shares. When we visited Mexico a few months back, we
noticed that he was upset. When we asked Hymie why, he
explained that he felt he sold out too cheaply, but as
we had a good lawyer and an ironclad contract he
couldn't get out of the deal. Mark immediately
resolved to make him happy, and as we still owed him
$700,000, we agreed to pay him $350,000 and accelerate
the purchase, along with 350,000 shares and an
additional 100,000 to consult for us for one year.
Hymie, an owner for the past 30 years, knows this
district and mountain better than anyone. Again the
point is that Mark is an honorable human being.
Are we perfect? No. Do we make mistakes? Yes. Is our
background in mining? We never pretended to be mining
professionals. Mark made millions running a chain of
clothing stores and then from 1999-2004 he was a
successful venture capitalist in Toronto. Do you think
that we could have come this far without his extensive
contacts and expertise? Yes, we have a relationship
with Citic , one of China's largest companies. In
China one must deal with companies such as Citic to
sell the ore....
We are building a real silver company, with hundreds of
million of ounces in the ground, and the potential for
millions of ounces of production in the next 2- years.
If I had any doubts about my partner's integrity, I
would not be doing business with him. There are many
silver juniors out there. What sets us part is our
aggressive management, ability to raise funds and
negotiate lucrative deals, create and maintain
contacts in China, our long-term, Asian investors, and
our ability to grow this company quickly and well.
Union Securities in Toronto would not have agreed to
list us if they did not believe in our company..... |
